The Case for Reserve-Based Lending in Oil and Gas | Athan Attia, Dynamic Investments

Athan Attia of Dynamic Investments speaks with Adam Smallman at the PEI Private Credit New York Forum about oil and gas credit, including reserve-based lending secured against future production. He also discusses real assets allocations, including residential real estate, student housing, Gulf hospitality and infrastructure, and expectations for pressure in parts of direct lending.

1. Attia makes the case for oil and gas as an underexplored area of credit and explains reserve-based lending as debt secured against future production from an oil reserve.
2. He expects investment to pick up over the next one to two years across production assets and midstream and pipeline companies, with geopolitical events pushing oil prices higher.
3. Dynamic's main real assets focus remains residential real estate, with student housing an area it is looking to enter in the US and Europe, and hospitality opportunities in the Gulf.
4. Attia expects elevated interest rates and more cautious consumer spending to pressure some direct lending borrowers, and says parts of Dynamic's direct lending book may be reduced.