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Opportunistic credit funds are gearing up for a busy year as increased interest rates start to bite, says Alter Domus group sector head of debt capital markets Greg Myers.

Whether it is to support founders seeking the next phase of growth or to address liquidity needs, opportunistic credit is a growing focus for private credit, says Guillermo Ferre, head of Spain and Italy at Kartesia.

With a robust economic outlook despite elevated interest rates, prospects for APAC private credit remain strong, but international LPs are still underallocating to the asset class, say Huatai International’s Ryan Chung and Isaac Wong.

Emerging markets are proving it is possible to make responsible and sustainable investments over the cycle and see a genuine impact, says Nicholas Bamber, head of private credit at LGIM Real Assets.

There are opportune markets available for experienced local lenders, say Arrow Global’s Toni McDermott and Richard Roberts.

Special situations investing in Europe is changing, says Ahmed Hamdani, founder and managing partner at Zetland Capital.

Targeting lower middle market borrowers offers a pricing premium and better lender protections, but a long-term commitment to this segment is critical, says Rich Christensen, senior partner at TPG Twin Brook.

Private debt’s future is bright due to favourable market dynamics and innovations such as perpetual vehicles, says Stephen Nesbitt, CEO of Cliffwater, Americas Investor of the Year in this year’s PDI awards.

Setting the right impact KPIs aligned with companies’ developmental projects is pivotal for performance enhancement, says Kartesia’s Coralie De Maesschalck, head of CSR and ESG.

Jack Gay, global head of real estate debt at Nuveen Real Estate, takes an in-depth look at the sector’s key characteristics.