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Bailey McCann, Opalesque New York:

Private credit fund managers have continued to expand their lending activity according to a new report from the Alternative Credit Council. Private credit funds reported a 20% increase in their lending volumes in 2021 and the sector retains a positive outlook towards deployment opportunities in 2022 and 2023.

The Alternative Credit Council (ACC) and Allen & Overy LLP (A&O) conducted a survey of private credit managers and received responses from 54 private credit managers and investors. The survey data was then explored by the ACC and A&O in a series of one-on-one interviews.

Lower middle market and mid-market companies could be a beneficiary of this trend as there is more capital available for these businesses than there has been in the past. Loans to larger corporates often in excess of $1 billion, are also continuing despite slower activity overall.

Private credit funds hit a significant speedbump mid-year according to data from the council, and while liquidity is tighter now than it has been in the past, financing is still getting done. The certainty of execution and flexibility of terms offered by private credit fund managers is attractive to borrowers of all types in a challenging market, the report says.

Investors might want to keep a close eye on repricings however. The report notes that "research indicates that while movements in the price of some publicly traded instruments has become more comparable with priva......................

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