Private Credit is Having a Moment

Institutional interest in private credit remains high because it provides opportunity for diversification and solid return potential, and when invested in high-quality funds with robust deal terms, it can offer defense from the fluctuations of the economy. High interest rates in recent years have also been a tailwind for many private credit strategies, now estimated at nearly $1.7 trillion in total assets under management, according to Preqin.

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New Catalyst Targets $750 Million Debut Fund to Back New Managers

New Catalyst Strategic Partners is on the road with its debut fund dedicated to investing in up-and-coming private fund managers. The Los Angeles firm is seeking $750 million of investor commitments, which, if successful, would make it among the larger first-time funds raised in recent years.
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The Next Era of Private Credit

Private credit has been one of the fastest-growing segments of the financial system for the past 15 years, and continues to grow. What next? McKinsey says it expects four trends to define “a new industry ecosystem.”
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Are Retail Investors the Next Frontier for Private Equity?

Some of the largest private equity firms, including Blackstone, Apollo Global Management and KKR, have launched dedicated funds for retail investors. Most recently, Borgman Capital, a lower middle-market investment firm in Wisconsin, launched its Pass the Hat platform, which gives accredited investors access to Borgman’s portfolio. Many more are getting onboard.

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Middle-Market Deals Spark Revival for Private Equity

U.S. buyout dealmaking gained traction in the first half of 2024—with middle-market deal value rising 12%, versus about 5% for the broader PE market. Small-cap public equities have closed the gap to large-cap companies and deal multiples for middle-market businesses have been rebounding.

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Consolidation Is Looming for Private Credit

Market share consolidation will happen both organically and through acquisitions, according to Chris Lund, managing director and co-portfolio manager of institutional vehicles at Monroe Capital.

“I would not single any one private credit firm out by name, but I believe the firms who make the most sense as targets will be those with an ability to directly originate their own loans, as opposed to the managers who are typically participants in other firms’ loans, with a demonstrated track record of strong asset selection and workout capabilities,” Lund says.

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