Look at banks’ willingness to lend to private companies. That’s going to be diminished. And then you factor in potential regulation coming down that’s also going to further diminish their ability to lend to private companies. Someone’s got to fill that gap. So, it’s going to be private lenders. I like that. And then additionally, given the valuation adjustments we’re seeing in venture capital and in growth equity right now creates a much lower valuation to come into the door at. You’re getting bigger warrant packages and lower strike prices. So, the IRR potential here…I’m putting well over 20% IRR expectations on venture debt right now. I think additionally, because there’s so much demand, the ability to increase the quality of loans and create a more covenant heavy loan package right now is also more beneficial for the venture debt lender.
You’re getting bigger warrant packages and lower strike prices
