Exploring the surge in private credit firms' popularity, the chapter discusses their role in acquisitions by private equity firms amid increasing interest rates. It also examines the challenges of transparency and valuation in the $1.7 trillion private credit market, emphasizing the difficulties in obtaining detailed information and assessing the true value of privately held loans.
Private credit funds are having a moment. Once under-the-radar lenders that did deals with riskier clients, the firms have gotten a lot more popular as interest rates have climbed. But private credit funds are also under a lot less oversight than traditional lenders, allowing little transparency into the way they value their loans. And all this new-found attention is starting to come with heightened scrutiny.
On today’s Big Take podcast, reporter Silas Brown shares what we know – and what we don’t – about how the world of private credit operates, and what new regulatory interest could mean for the $1.7 trillion dollars of assets these funds are managing.
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