Private Credit Pulse - 12/20/24

Hello and welcome to the annual Private Credit Pulse roundup. Since everyone’s talking this week about private credit’s plans for 2025 (Ares, Apollo, BlackRock), we asked Microsoft Copilot to put on its Nostradamus hat and tell us what to expect. To quote NostrAIdamus (see what we did there), “Ah, the year 2025, a time of great transformation and revelation in the realm of private credit.” We don’t disagree. Here’s what our AI resources predicted, with a few informed prompts from Financial Profiles: . 

The Dawn of Digital Dominion:

As the sun rises on a new era, the private credit market shall witness the ascendancy of digital platforms. The old ways of manual underwriting shall fade into obscurity, replaced by the swift and precise judgments of artificial intelligence. 

The Convergence of Global Giants:

Financial titans from different corners of the globe shall join forces, pooling their resources and expertise to navigate the complexities of international markets. This convergence will lead to unprecedented opportunities and challenges, as the boundaries of private credit expand beyond the familiar shores.
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The Ascendancy of Direct Lending:

As the stars align, companies shall turn away from the temples that are traditional banks, seeking solace in the arms of private credit firms. These firms, like wise sages, shall offer bespoke financing solutions, tailored to the unique needs of mid-sized and large enterprises. Thus, the prophecy unfolds: direct lending shall flourish, guided by the stars and the ever-changing tides of interest rates, bringing forth a new era of financial enlightenment.

Our most dedicated readers shouldn’t be surprised by these predictions, seeing as our most clicked articles this year signal the emergence of these very trends. They are: 

• Pensions & Investments: Hedge funds are diving deeper into a hot area: private credit
• Bloomberg: Fink Pushes BlackRock into High-Stakes Bet on Private Markets
• MarketWatch: This opaque, lightly regulated corner of Wall Street is growing by leaps and bounds. Some worry it will eventually deliver a shock to the financial system.
• McKinsey: Private credit: a new industry ecosystem
• Bloomberg: Ed Altman Says Private Credit Has Broken a Junk Bond Barometer 
  
  

Below are this week’s industry headlines. Wishing everyone a happy holiday and New Year. See you in 2025. Prepare, for the future is nigh, and it holds private credit wonders yet unseen… 

Private Credit and Middle-Market Trends & Commentary 

Experts forecast further growth in private credit market in 2025  

Private Credit Skeptics Point to Warning Signs as Investors Plough Ahead 

The Surge in Asset-Based Lending Ensures No End in Sight for the Private-Credit Boom 

Why private credit is shrinking as it booms 

Asset-based finance expected to drive private credit growth - Fitch Ratings 

2025 US Private Credit Outlook: More M&A, larger lenders, bigger market 

Private Credit Wants a Top Spot on Your Mobile Investing App 

Private credit funds and banks are fueling the Gulf fintech boom 

January Capital Raises $85 Million for Private Credit Tech Fund 

Dubai's DIFC attracts surge of Chinese financial firms 

Private Credit's Incredible Vanishing Cashflow 

Wall Street Titans Tap Main Street to Refuel Private Credit Boom 

Affirm Taps ‘Megatrend’ of Private Credit to Sell More Loans, Operating Chief Says 

Lower-Rated Private Credit Borrowers to See More Hurt in 2025, Morningstar Says

Firm News, Including Thought Leadership and Marketing

Apollo says private credit may reach $40 trillion by 2030 

2025 Economic Outlook: Firing on All Cylinders 

Alternative credit firm Crescent Capital to open European office in Frankfurt  

Blackstone’s Gilles Dellaert on private credit and insurance 

BlackRock sees wealth management allocations driving private markets' $20T surge 

Ares’ Arougheti Sees More Deals as PE Investors Clamor for Cash 

Sixth Street to fund $4bn of Affirm's BNPL loans 

Blackstone’s Wealth Boss Targets $1T in Assets 

Unlocking the investment potential of private markets 

Buy now, pay later company Affirm strikes $4 billion loan deal with private credit firm Sixth Street 

Tech Start-Up Databricks Seeks $2.5 Billion Private Debt Financing 

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Learn more about how Financial Partners can help you build your reputation and value by emailing us at privatecredit@finprofiles.com. 

Financial Profiles is a strategic communications firm that creates enterprise value for our clients through effective communication with all stakeholders. We have a dedicated financial services practice with deep experience in private credit with both public and private companies.