Private credit, or non-bank direct lending to private companies, is a rapidly growing asset class.
Investors manage $1.5trn globally in private credit, according to Preqin. The asset class has tripled in assets under management (AUM) since 2012, and it’s becoming more attractive to new types of investors.
But it also poses unique challenges for asset managers and institutional investors.
Join us today to listen to our podcast with special guest and private credit expert James Jefski, managing director at State Street.
The private credit market is expanding as more companies seek loans from non-bank lenders, which often offer more favourable financing terms than banks. At the same time, more investors are turning to private credit as an alternative source of returns for their portfolios. Insurance companies, institutions, and individual investors are all energised by the opportunity to get access to an asset class that doesn’t behave in the same way as the public markets, that is variable rate oriented and can produce a significant yield.
As with all debt investments, there are different levels of risk in private credit. This means that tracking investment data is highly important for both the asset managers lending to companies as well as the institutions investing in their funds. Higher interest rates and macro conditions are affecting markets, including geopolitical conflicts and geo-strategic rivalries, from eastern Europe to the Middle East. In order to effectively manage a debt portfolio and layer in the risks associated with it, investors and managers need access to consolidated investment data from the portfolio level all the way down to the asset level.
How do private debt clients scale these assets and markets? What are the challenges around data, technology, information, regulation, valuations, transparency, book and record-keeping, and workforces?
Click on the section above to hear us discuss all this and more in this exclusive recording, brought to you by State Street, a global leader across investment servicing, markets and financing, and investment management.
