The Alternative Credit Council have released the Financing the Economy 2024, featuring our CIO, Thomas Lloyd-Jones. This year’s report is their most extensive look at the private credit market to date, bring together 40+ data points alongside contributions from leading industry figures.
Here are some of the key takeaways:
– Another milestone for the industry: we estimate that private credit AUM has surpassed $3 trillion globally, with $333.4 billion in new capital deployed in 2023 alone
– Private credit continues to diversify: While corporate lending remains the core of the asset class, we find that asset-backed lending, real estate debt, and infrastructure debt now account for 40% of private credit AUM
– Significant but stable growth: Core financial stability metrics such as leverage and liquidity mismatches remain stable.
– Resilience across multiple measures: stress on borrowers is being reflected in loan term adjustments and valuations with high levels of transparency to investors on performance
– Optimism about the future: Majority of managers expect to grow their business in core US, European and Asian markets
Access the research at https://lnkd.in/eaXW-mKy to learn more about these trends.
