Private Credit Evolution

The private credit market has surged from $250 billion to nearly $1.5 trillion since 2007, driven by regulatory changes and market dislocations. Recent collapses in the banking sector have further expanded opportunities for private equity sponsors, who value the certainty of execution that private credit offers. As banks retreat from certain lending areas due to regulations like Basel III, the private credit community is poised to fill the gaps and maintain its market share.