03/10/2026
Credibility earns its value in stressed markets.
In his latest reflection, Encore’s CEO & Chairman, Dr. Bharat Sangani, examines why sponsors must look beyond the term sheet during downturns, prioritizing honesty, alignment, and respect for investor capital, even when contractual rights allow otherwise. Read the full perspective: https://encore.bz/media-center/in-hard-markets-what-do-sponsors-truly-owe-their-investors/
We invite you to join in the conversation on navigating today’s markets with clarity and discipline in the comments below.
In stressed markets, sponsors face more than a financial event; they face a test of credibility.
Private markets are notoriously private. In good times, the status quo stays unexamined, but when the market turns, the "fine print" often becomes a hiding place. Encore’s CEO and Chairman, Dr. Bharat Sangani, is opening the door to the behind-the-scenes reality of private markets and the principles sponsors owe their investors.
While investors are positioned for meaningful upside, they also bear the risk of losing principal. He believes true stewardship is defined by how a sponsor responds when a deal is at risk. He now turns his focus to the responsibility of:
• Honesty over Optics: Choosing the hard truth over a "crafted" update.
• Alignment over Rules: Prioritizing shared outcomes over contractual outs.
• Respect for Time: Providing immediate clarity instead of indefinite extensions.
The difference between a candid update and a polished one is a reflection of a firm’s DNA. These conversations usually happen behind closed doors; we’d rather have them in the open.
Read the full perspective: https://bit.ly/4rtDpf5