Moderated by Olivier Too (Auptimate), the discussion featured Gustavo Leal (Kilde) and Joe Wadakethalakal (PVX Partners).
The session opened with a breakdown of how private credit and venture debt differ from traditional venture capital and private equity. The key takeaway was clear: while equity investors underwrite upside, credit investors prioritise downside protection, cash flow visibility, and structured returns. For many in the room, the real tradeoff came down to certainty versus upside.
The conversation then moved to the current state of the market. Despite rapid growth, with global private credit reaching $3.5 trillion, recent redemption pressures and rising default rates have raised questions. The panel highlighted that much of the stress is concentrated in retail-facing structures, rather than institutional strategies. In contrast, Asia continues to present strong opportunities, with venture debt still underpenetrated relative to the US and growing rapidly across India and Southeast Asia.
Both Kilde and PVX shared how they approach deployment in this environment. From diversified consumer and SME lending portfolios to revenue-based financing for growth-stage startups, the focus remains consistent: disciplined underwriting, clear return profiles, and strong downside protection.
When it came to deal evaluation, the panel emphasised a structured approach. Country risk, borrower fundamentals, deal terms, and co-investor quality all play a role, but the first signal to walk away is often misalignment in incentives or insufficient downside coverage.
The session reinforced a broader theme. In private credit, structure is not just a layer around the deal. It is the deal.