Private loans made directly to borrowers by certain specialized institutional lenders (eg Private Credit funds).
Private Credit emerged in the 1990s, however the market for direct lending has grown significantly since 2009. Following the Global Financial Crisis, many banks were forced to reduce their lending to companies.
Direct Lending is now on a par with the Broadly Syndicated Loan market in terms of Assets Under Management and is set to grow further. It offers Borrowers a number of advantages including certainty of execution, tailored solutions and a direct relationship with the Lender.
TERMinology
Our glossary of private capital terms