Direct lending

Appetite for credit secondaries, distressed and subordinated debt strategies is growing among LPs – where can the market expect to see the next wave of growth?

Investors are increasingly turning to evergreen structures and bespoke mandates as they seek to diversify their private credit exposures, say Partners Group’s Lori Pomerantz and Andrew Bellis.

Lenders in Europe are attracted to the diversification and enhanced risk-adjusted returns that lower mid-market sponsorless deals can provide, writes Aymen Mahmoud of McDermott Will & Schulte.

Mid-market direct lending, asset-backed finance and even commercial real estate continue to generate attractive opportunities despite widespread macro volatility, says Chris Hedberg, AllianceBernstein’s head of capital formation for pr­ivate alternatives.

Innovations in the private credit market that allow borrowers to achieve high levels of flexibility in their loans represent the next stage of the industry’s evolution, say Proskauer’s Philip Bowden and Alex Griffith, and Ares Management’s Michael Dennis.

As the private credit investor universe continues to expand, there are myriad opportunities on offer for managers that can handle its increasing complexity, says Nuveen’s chief executive officer Bill Huffman.

The vehicle seeks opportunities in sponsored and non-sponsor backed companies across five subsectors.

Private debt lead Natalia Shelestovych says the €231bn assets under management reinsurer is considering developed Asia and secondaries as investment opportunities.

Life insurers have shifted from simple asset-liability matching to linking with private equity and illiquid credit investments.

The Private Debt Investor Global Awards return.