Direct lending

Staff of the $60bn Arizona State Retirement System, a long-time private credit investor, are still mostly optimistic about the asset class amid a push to diversify the programme.

The asset class’s growth, alongside spread compression and heightened competition have it approaching bubble status.

‘Private Credit+’ is a $45trn opportunity globally. Direct lending, $1.5trn of that amount, is saturated, the report says.

The MD and head of direct credit discusses where the consumer environment is headed, deal levels, PIK and other market currents.

The North American senior debt fund seeks to find divergent credit opportunities in return for higher yield.

Investment consultant RVK estimates allocation of an additional over $200m would get the pension to its 7% target in 2029.

Memo outlines new positions to enhance the focus on private credit after a raft of promotions announced in July.

The relationship is coming into even closer focus now, given innovative financing structures, says influential newsletter.

Average mid-market loan and revolver recoveries are down to 66% on a trailing five-year basis.

The A$35bn Australian superfund’s head of credit, Jason Huang, says private credit is ‘definitely not defensive’ but has an important role in its portfolio.