Defining Investment-Grade Private Credit

Investment-grade private credit, often referred to as private IG, is a broad and significant market that extends beyond traditional direct lending scenarios. It encompasses various forms of credit, including trade credit, consumer credit, and corporate loans, collectively amounting to an extensive $40 trillion market. This segment has long been overlooked, as private IG includes assets typically held on the balance sheets of banks and insurance companies, rather than solely focusing on the $1 to $2 trillion of middle-market direct lending frequently discussed. Recognizing the full scope of private IG presents substantial investment opportunities for those willing to explore this growing asset class.