Emerging Themes and Trends in the Private Credit Market

The chapter explores two emerging themes in the private credit market, focusing on the comparison between banks and direct lenders, as well as the impact of reduced M&A activity on deal flow and competition. It discusses the shift in deal focus from private credit to broadly syndicated deals, the implications of substantial takeouts by direct lenders in 2023, and the growth and risks in the private credit market, including concerns about aggressive cash deployment, tight spreads, and increasing leverage.