What's Going on in Private Credit?
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Direct lending replaced bank lending after 2008
“The rise of direct lending is one of the most important developments in the financial world since the Global Financial Crisis.”
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Higher rates boosted private credit yields significantly
“The change in the interest rate environment has transformed the returns available to credit investors from meager to attractive.”
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Excess capital supply risks lowering credit standards
“When there's too much capital chasing too few deals, the quality of those deals and their terms usually suffer.”
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Private equity performance dictates credit outcomes
“The success of direct lending is now inextricably linked to the success of the private equity industry.”
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Private credit is now a permanent fixture
“Private credit has moved from a niche sub-asset class to a major, permanent part of the investment landscape.”