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As direct lending captures more and more deal activity, firms in this segment will need to differentiate themselves on various fronts, argue Ian Fowler and Adam Wheeler, co-CEOs of Corinthia Global Management.

Lending at scale in Europe’s granular residential market requires a careful balance of operational efficiency and local knowledge, says Adam Baghdadi, head of lending solutions at Arrow Global.

Investors wishing to benefit from positive tailwinds across US, Europe and Asia-Pacific would do well to consider a global direct lending strategy that looks across all three markets, say Tyler Gately, Justin Hooley and Orla Walsh at Barings.

The recent market volatility has created both challenges and new prospects, says Ian Jackson, head of strategic opportunities at Permira Credit.

A tech-led origination strategy that identifies high-growth micro-sectors can mitigate risks posed by macroeconomic volatility, says Philippe Arbour, senior partner and head of UK at Tresmares Capital.

LPs should prioritise managers with deep, locally rooted teams and robust credit capabilities to unlock the full potential of the European mid-market, says Boris Harmsen of Pemberton Asset Management.

The market for GP-led and LP-led transactions is speeding up, driven by the opportunity to acquire interests in credit funds at a premium, say Henri Lusa, Callum Smith and TJ Bakshi of Partners Group.

Tightened liquidity and a volatile economic outlook will continue to drive the market forward, according to Rakesh (Rick) Jain, partner and global head of private credit, and Toni Vainio, partner and head of European private credit, at Pantheon.

With private credit fundraising flourishing, new managers emerging and GP-led deals on the increase, Leor Landa, head of Davis Polk & Wardwell’s investment management practice, and partner Sijia Cai, are expecting a bright future for the private credit secondaries market.

Europe’s mid-market offers superior risk control, attractive pricing and a continually expanding opportunity set, says Mark Brenke, member of the executive committee and head of private credit at Ardian.