Private Credit: A Shifting Financial Landscape

View profile for Gerhard Grueter

Family Office - Asset Management - Private Credit

DISCLAIMER: These are personal views and not related to any corporate entity. Private Credit' as Asset Class ̶ Investing in a Shifting Financial Landscape Private credit markets have experienced explosive growth, with assets under management soaring from $280 billion in 2007 to $1.5 trillion by 2022, expected to reach $2.7 trillion by 2028. This surge stems from companies increasingly turning to private lenders for debt financing, bypassing traditional banks. Investors are enticed by higher yields and enhanced protection, while borrowers appreciate flexibility and tailored terms. However, economic shifts, including lower GDP and higher inflation, raise concerns about future market performance. Despite challenges, trends like risk-averse banking practices, corporate expansion, and investor demand for customization continue to bolster the sector. Private credit dominates leveraged buyout financing and is projected for further global expansion. Yet, uncertainties such as market normalization and geopolitical risks persist, necessitating strategic portfolio management and rigorous due diligence. The "Golden Moment" of private credit presents both opportunities and challenges, requiring investors to adopt a proactive and discerning approach to maximize its potential effectively.                  If you want to sign up to our publications, Follow: https://lnkd.in/dQd8qWT5   Link: https://lnkd.in/gBW-Hxnc

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