CPD: The private credit zeitgeist
Private credit has been the topic de jour, with new funds being launched regularly over the past two to three years. What’s behind the sudden rise in funds and its popularity as a growing segment of alternative investments?
Private credit refers to non-bank lending. Instead of borrowing from a bank or issuing bonds on a public exchange, a company gets a loan from a private lender, such as a private credit fund or an institutional investor. It encompasses privately negotiated debt instruments extended to corporate borrowers.
Operating outside the regulated banking system, private credit serves as a capital source for privately held or non-investment grade companies. It encompasses a broad spectrum of investment strategies beyond direct lending, offering diverse opportunities for investors.
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