Private Credit & Direct Lending

Private Credit & Direct Lending covers funds and business-development companies providing direct loans, mezzanine debt, and credit to middle-market companies, largely for private-equity-sponsored deals. It has been the standout growth story in finance: a multi-trillion-dollar asset class built by Ares, Apollo, Blackstone, Blue Owl, HPS, Sixth Street, and peers.

Direct lenders have taken substantial share from banks in leveraged and middle-market lending, drawn by attractive yields, control, and the ability to hold and originate at scale. Permanent and institutional capital has flooded in, and consolidation among credit managers, along with their tie-ups with insurers for permanent capital, is a defining trend.