Hello and welcome to Private Credit Pulse by Financial Profiles, a weekly account of the latest industry news and views to help you stay current on the buzz in this dynamic space.
Bloomberg's Markets Magazine is diving into the private credit market, starting with a 101 about the “hot new thing on Wall Street” and continuing with a series highlighting its rapid ascent as a key asset class on Wall Street. The articles emphasize the transformation of private credit from a niche product to a mainstream investment, driven by higher interest rates and a retreat in traditional bank lending. One analysis underscores the challenges faced by private credit funds, such as rising default rates and regulatory scrutiny, which could impact their long-term viability. A guide to “joining the exclusive” party delves into the high fees and complexity associated with private credit investments, and the limited liquidity that may make it difficult for investors to withdraw money quickly. Broader themes revolve around the growth, democratization, challenges, and lucrative nature of the private credit market.
Bloomberg also highlights the meteoric rise of private credit as a significant wealth generator on Wall Street, transforming it into what the analysis deems as a “billionaire factory.” The article underscores the lucrative nature of private credit, with higher yields and substantial fees contributing to the fortunes of key players. It also profiles several new billionaires who have emerged from this sector, including Tony Ressler of Ares Management, Marc Rowan of Apollo, the founders of Blue Owl Capital, and BlackRock’s Larry Fink. Bloomberg separately reports on the significant role of BlackRock in the private credit boom, including the recent acquisition of HPS for $12 billion.
JPMorgan Chase is making significant moves in the private credit market. First, the bank reportedly declined to provide detailed private credit lending data to regulators, grouping its $133 billion lent to non-banks under a broad category. This move highlights the ongoing tension between financial institutions and regulators over transparency in the burgeoning private credit market. Meanwhile, JPMorgan Asset Management is preparing to launch its first private credit interval fund. This fund aims to attract a broader range of investors, including both wealthy clients and everyday investors, by providing access to private credit through a more liquid investment vehicle. These developments underscore JPMorgan's strategic focus on expanding its footprint in the private credit market while navigating the regulatory landscape and addressing investor demand for higher yields and diversification.
Lawrence Golub participated in a Q&A discussion with business students at the NYU Abu Dhabi Campus.
Investment management firm Invesco and Singapore-based digital assets exchange DigiFT have partnered to bring on-chain private credit funds to users.
Blackstone’s Michael Zawadzki published “A Broader Toolkit to Capitalize on the Credit Opportunity,” in which he says that the “Golden Moment” will endure into a “Golden Age,” with an extended runway of growth…”
Below is a list of other links to help you catch up on this week’s market headlines.
Continuation funds mark next stage of growth in private credit
Private Credit Is the Hot New Thing on Wall Street. But What Is It?
An Investor’s Guide to Joining the Exclusive Private Credit Party
When Private Credit Loans Get In Trouble, Here’s What Happens
Marc Pinto Named Global Head of Private Credit for Moody’s Ratings
Private capital deal values rose in growth markets in 2024
Systemic Risk: Private Credit’s Characteristics Can Both Exacerbate and Mitigate Challenges
Singapore PM/Finance Minister Announces New $1B Private Credit Growth Fund
Systemic Risk: U.S. Banks' $1T In Loans To Nonbanks, Like Private Credit, Creates Risks And Rewards
CVs Help Fuel Private Credit Secondaries Surge
The Rapid Rise of Private Credit - Education
Public vs. Private Credit | Bloomberg Real Yield
Watch Christina Minnis on Public vs Private, Credit Outlook, Real Estate
Bain’s private credit group invested $6bn in 2024 - Alternative Credit Investor
Buyout firms’ equity-debt double act is creaking
Gramercy Targets $1 Billion for Private Credit Bets in Turkey
Antares Capital launches $1.4bn private credit fund targeting PE-backed middle-market firms
EQT’s new boss has a private-credit hole to fill'
Invesco: Private Credit Platform Closes $1.4 Billion For Direct Lending Strategy
Marathon Asset Management CEO Bruce Richards: We are in a 'golden era' of private credit
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