The Credit Edge by Bloomberg Intelligence Blackstone Eyes $30 Trillion Private Credit Bonanza
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Oct 3, 2024 Rob Horn, Global Head of Infrastructure and Asset-Based Credit at Blackstone, shares insights on the booming private credit market, projected to reach $30 trillion. He highlights the advantages of hard-asset collateral in securing premium returns. Tolu Alamutu, a senior credit analyst at Bloomberg Intelligence, discusses trends in European real estate and credits. Despite geopolitical risks, he maintains a positive outlook for residential markets. The conversation also explores investment opportunities in digital infrastructure and the growing appeal of single-family rentals.
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Private Credit's Advantage
- Private credit markets offer flexible capital and customized solutions for borrowers.
- This presents a large market opportunity currently occupied by banks, but with room for private capital providers.
Data Center Investments
- Blackstone, as thematic investors, focuses on data centers due to their stable, long-term contracts with major tech companies.
- Their ownership of QTS and Air Trunk demonstrates their commitment to this sector.
Private vs. Public Asset-Based Finance
- Private asset-based finance involves direct lending to borrowers, focusing on various industries.
- It offers a senior position and security in business assets, similar to but distinct from public asset-backed securitization.