Just as private credit is becoming an asset class of its own and private equity houses are finding a new revenue stream away from their bread-and-butter buyout businesses, this burgeoning part of leveraged finance is losing steam.

Direct lending has been its crowning achievement. Credit was not only extended to smaller companies that had limited access to public markets, but to back big buyout deals that in the past relied on banks to arrange syndicated loans or junk bond issues. Firms such as HPS Investment Partners Llc, a spinoff from JPMorgan Asset Management in 2016, were among private lenders that single-handedly underwrote billion-dollar loans. Last year, direct lending funds managed more than $550 billion, up from $95 billion a decade earlier, according to PitchBook. Investors in these funds, in turn, were able to earn 12% returns.

QOSHE - Private Credit Has Had Its 15 Minutes of Fame - Shuli Ren
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Private Credit Has Had Its 15 Minutes of Fame

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13.03.2024

Just as private credit is becoming an asset class of its own and private equity houses are finding a new revenue stream away from their bread-and-butter buyout businesses, this burgeoning part of........

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