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Suntera's Michael Von Bevern breaks down how private equity lenders are moving and acting more like business partners than banks in a tightening global market.
As traditional banks continue to shy away from risk, private loans are stepping in to provide the speed and execution that entrepreneurs desire. Global Finance spoke to Michael Von Bevern, Head of Global Finance at Suntera Global, about why this “unregulated” sector has become permanent in financing.
Global Finance: What are the benefits of being a private loan borrower?
Michael Von Bevern: The biggest advantage is speed. It can be relatively easy, depending on what type of loan you want. In the case of direct lending, such as a high-term loan, it is usually easier because your risk profile is clear. For anything much smaller, such as a mezzanine or sub-debt, the advantage is that it provides capital without reducing ownership. That is important for entrepreneurs. They just need cash flow to grow and they don't want to give up equity. And they don't want to be taken to the cleaners to raise equity. In those cases, a mezzanine or sub-debt can be a really viable solution.
In our business, we see a lot of NAV (Net Asset Value) lending, where the fund's assets serve as collateral. This helps borrowers maximize returns and navigate tricky markets, especially when raising equity is difficult. I also see a lot of activity in the specialty finance, or asset-based lending space. The borrower opens liquidity at favorable rates rather than going to banks.
GF: Are banks that difficult?
Von Bevern: Well, they don't take any risks. That's not what they do. They're betting on sure things, and in our industry, we're filling the gap for high-growth companies looking for traditional, fast-paced solutions. We have a borrower from Suntera – Carlyle Group. They are very useful. It's like having a business partner.
GF: Wouldn't you get more help from, say, JPMorgan Chase or Morgan Stanley?
Von Bevern: We bank with JPMorgan here in the US Don't get me wrong — I love JPMorgan. But, they are not vulnerable. If you need speed, if you need quick execution, banks are not known for that. Specialized lenders – whether they specialize in a specific sector or type of credit – can move much faster than a bank. That speed can make the difference in getting a deal done. There is a lot of competition out there, especially as the IPO market dries up. Finding ways to generate income and grow your company is important. At the end of the day, banks are regulated. These lenders are blind, so they simply look at credit differently than your typical fundraiser.
GF: Will the unruly party end soon?
Von Bevern: I do not think so.
GF: Why?
Von Bevern: I've been doing this for 20 years, and people have been talking about personal debt management the whole time. I just don't see it happening. If you've managed it, you'll basically be managing private equity and venture capital, too. What makes it work is that there are highly skilled, trained people in the industry who can lend responsibly while helping companies achieve their goals – whether it's M&A, expansion, or growth. I don't see the law coming in and ending that.
GF: How do you repay a private lender like Ares, Blackstone, KKR, or Carlyle?
Von Bevern: I can't speak specifically to Carlyle loans, but in general, we see a lot of loan agreements as a fund manager and a loan agent. The key is flexibility—these deals are designed for payments, but they give you options: a payment-in-kind (PIK) interest option, rollovers, and adjustable contracts. They are designed to support your growth while giving you room to navigate the business.
GF: So, with Suntera and Carlyle, is there anyone at Suntera who can offer expertise or perspective, given how sector-specific it is?
Von Bevern: I can't speak for Suntera and Carlyle, but the big private equity lenders work across industries and verticals. That means if you're in a certain industry and need money, they bring a wealth of information from similar companies. They can act almost like a business partner – advising you on how to use the proceeds, what the return is expected to be, and even the terms of the loan agreements.
Over the years, I've seen lenders in areas like recycling, renewables, and reuse not only provide capital but also provide comprehensive guidance on the business itself. It's similar to what private equity can offer – but without the reduction.
GF: Wouldn't these companies get money from a traditional bank if they could? And are these companies already at risk of debt?
Von Bevern: There is risk in every loan. Less risky borrowers are usually the ones that banks handle. Banks impose strict prudential rules and rely on payments. Private credit, on the other hand, tends to subsidize the next level down or borrowers who need processing speed that banks can't provide. The risk depends on the structure of the loan – whether it is secured or unsecured, senior or mezzanine – and is regulated by interest rates, covenants, and other conditions.
Looking ahead, we are approaching a refinancing cycle that will make the risks embedded in today's market clear – perhaps by the end of 2027. However, defaults are still rare, and most borrowers are likely to refinance without a problem. Of course, there will always be cases, like the Blue Owl, that attract attention, but those are not indicative of a wider problem.
GF: US small business financing jumps 67% year over year. Many point to inflation, economic instability, and debt consolidation as key factors.
Von Bevern: A few years ago, when interest rates were historically low, it was easy to match lenders with portfolio companies in a way that worked for both parties. Today, with interest rates so high, we are entering a cyclical period that naturally puts pressure on these businesses. Your statistics are not surprising, but structurally, the market remains sound. It is also difficult to know how many of these shortfalls are due to loans or debts.
GF: The European Central Bank's fourth quarter data shows that euro banks are tightening credit standards. Do you see growth in private credit globally as a result?
Von Bevern: The expansion of private credit is a global trend. We operate in the UK, Channel Islands, US, Singapore, Hong Kong, Bahamas, and other markets, and the trends are the same in all regions – interest rates have risen everywhere. Even at high levels, the defaults are not as high as some would expect. Borrowing today is often collateralized, not just unsecured, and large funds, such as BlackRock's $20 billion debt fund, expand the pool of borrowers, introducing broader risk — but that's manageable. Competition among private lenders has increased significantly, thanks to an abundance of dry powder and a mature, informed market. Looking ahead, the recovery cycle over the next year or two will be interesting to watch, but I don't see it as a systemic problem.
GF: Should ETFs, retirement accounts, and pension funds be combined private credit companies?
Von Bevern: They are already there. Private equity exchange-traded funds (ETFs) are among the fastest growing segments of the business. And they can be directly with the lender or the stock of the company that makes most of the private loans. So it's kind of a direct and indirect way to get into the ETF part of it.
GF: So you are clearly serious about private credit. Are you missing something?
Von Bevern: Going into 2026, I expected it to be a strong fundraising year. There is a lot of dry powder, and many managers still have to fully invest the funds they have accumulated over the years before starting new ones. All in all, that made me stronger.
My concern is with emerging managers. With so much dry powder flowing to established names, it becomes difficult for new managers to raise funds. Go to the category of household names. The deep selection and abundant opportunities make it difficult for emerging managers in our space to gain attention. It's not that they can't succeed; they just won't be that many. I've worked with hundreds of emerging managers in my career, and many struggle to get off even a strong pedigree.
Emerging managers often provide special attention to portfolio companies, which can translate into better returns. If this segment is struggling, it could squeeze that segment of the market for alternatives. But I hope this too shall pass.
Editor's note: This interview has been edited for length and clarity.
