Deep Dive: Private credit growth set to continue despite headwinds as retail investors join in

Lower returns on the horizon

Private credit has emerged as the asset class of the moment, however private equity deals have been hit with several headwinds, including a surge in borrowing costs.

In recent years, private credit has become an alternative funding source, both in the UK and globally. This non-bank financing has benefited companies that might have struggled to obtain funding through public markets or traditional banks, and has fuelled the growth of an industry that now manages over $1.7trn in assets under management.  "This is a critical part of the economy – in Europe, SMEs account for 99% of businesses, 100 million employees and over half of GDP. Private credit has played a vital role in filling the funding gap," said Kirsten Bode, co-head of private markets at ...