Direct lending, the biggest segment in private debt, is now accessible to a broader range of investors and seeing increasing demand, boosted by its superior risk-adjusted returns and attractive features that include speed and certainty of execution.
Direct lending has historically demonstrated higher returns, higher yields, lower maximum drawdowns, and shorter durations than traditional fixed income. It is set to see increasing demand driven by structural market trends (e.g. tighter regulation of banks which is creating a financing vacuum filled by private credit solutions) as well as its unique intrinsic features that make it highly appealing for borrowers and lenders alike. Exposure to direct lending markets in both Europe and the US could prove a valuable provider of stable yields and robust distributions, acting as a compelling fixed income supplement in an investor’s portfolio.
Read our private market experts’ Headline, ‘Private Credit: Why Invest in Direct Lending?’ to find out more.
