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 — and their tie-ups with insurers for permanent capital — is a defining trend.