Interview Exclusive: Mark Wilton of Corinthia Unveiled
Corinthia Global Management Thrives in Competitive Direct Lending Market
In the dynamic world of direct lending, a new player has emerged, making waves in the industry. Corinthia Global Management, a year-old entrant, is carving out a niche for itself by focusing on the mid-market segment and leveraging its experienced team, employee ownership structure, and technology-enabled platform.
Headed by Mark Wilton, a seasoned professional with 18 years at Barings, Corinthia is making its mark. Wilton believes that the current macroeconomic environment will sort out the better managers from those who aren't, although a slowdown would be a concern. He anticipates that the illiquidity premium will maintain as public markets widen, potentially causing private credit to edge up.
Corinthia's focus on sponsor-backed lending, a niche less crowded than the larger corporate lending space, allows it to compete with the biggest players. Wilton asserts that their growing scale leaves gaps in the market for fund managers willing to originate smaller transactions.
The firm, which has financial backing from Nomura, positions itself as a core mid-market direct lending specialist, focusing on corporates with EBITDAs ranging from €10m to €50m. This employee-owned firm fosters strong alignment of interests, setting it apart from larger managers.
Corinthia's growth has been hard-earned, with Wilton considering it part of the fun they've signed up for. The firm has funded four deals and signed another four, with hopes of completing at least 12 transactions by the summer. It currently has eight offices across six countries and 50 staff.
The firm's technology-enabled platform spans Europe, North America, and Asia Pacific, merging efficiency and geographic diversification. This global reach, combined with its focus on the mid-market segment, allows Corinthia to present a seasoned, experienced front to investors despite its newness.
Being independent, according to Wilton, has advantages over being part of a larger firm. It allows for new skills to be learned and new avenues to be opened. Corinthia's independence, coupled with its agility and strong team coherence, positions it to compete against larger, more established managers by emphasizing team continuity, investor alignment, and market specialization.
Despite a recent mass exodus of 22 Barings private credit employees to join Corinthia, triggering a legal action by Barings against the firm and certain former staff members, Wilton remains focused on the future. He expects to see a rise in default rates across the industry and differentiation between fund strategies. However, he believes that private credit, typically performing well in periods of volatility, will step in when banks retreat.
In conclusion, Corinthia Global Management is a new entrant to the direct lending space that is making a name for itself through its team expertise, employee ownership structure, and focus on the mid-market segment. Despite its recent entry, Corinthia is poised to grow further, sticking to its core mid-market offering while expanding its business.
"Corinthia Global Management's foray into direct lending, with a focus on the mid-market segment and utilizing an experienced team, is revolutionizing the business landscape. By investing in sponsor-backed lending and leveraging technology, they aim to compete and grow within the competitive direct lending market."
"As Corinthia Global Management expands its finance operations, they emphasize their independence to embrace new skills and opportunities. This strategic positioning allows them to differentiate from larger, more established managers in terms of team continuity, investor alignment, and market specialization in the world of investing."
