The direct lending market was catalysed by banks’ withdrawal from mid-market corporate lending, and many are predicting that private credit firms in asset-based finance will be boosted in a similar way.
There is the same kind of dislocation in the market that enabled Canada’s PSP to make high returning investments when it first launched into private debt.
Top executives including Howard Marks and James Zelter expressed concern at last week's PDI Forum about political change and the risk of private equity being ‘squashed’.