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Laxman Pai, Opalesque Asia: The 20 largest private credit firms by private credit assets under management held a total of $138.14 billion in uncommitted capital, or 36% of the $385.28 billion in global private credit dry powder available to the asset class as demand for nonbank lending continued to grow.
According to a report by Preqin and S&P Global Market Intelligence data, current dry powder estimates were unavailable for two of the top 20 firms, so their actual share of private credit dry powder may be higher.
Private credit is a catchall term for various nonbank lending strategies, but direct loans to private equity portfolio companies are central to the industry's business.
Meanwhile, private credit fundraising has been challenging in recent years as institutional investors struggled with liquidity limitations that are at least partly tied to slowing distributions from their private equity investments. Total commitments to private credit were on track to fall in 2024 for a third consecutive year.
Lund predicted private credit fundraising would turn around in 2025 as accelerating private equity exit activity returns more cash to institutional investors. Forty-six percent of all institutional investors, including more than half of global pension funds, surveyed by investment manager Schroders PLC at midyear said they planned to up their allocations to private credit.
S&P quoted Chris Lund, an assistant vice president with middle-market lender Monroe...................... To view our full article Click here
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