Are there still opportunities in private credit?

Are there still opportunities in private credit?

The asset class has more doubled in size since 2018, with about a trillion dollars entering private credit strategies. 

Some have raised concerns that the space may be getting crowded, with too much money chasing too few opportunities. But Stephanie Rader of Goldman Sachs Asset Management points out that “it’s important to keep the context in mind.”

She explains that “private credit is filling a void left by the banks, which have pulled back on lending in light of post-financial crisis regulations.”

And while the asset class is popular among investors because of its potential to deliver high returns and diversification, Rader adds that it’s increasingly sought out by borrowers who “see the benefits of this bilateral relationship with a private credit lender – including speed, flexibility, and certainty of execution.”

“We still think there are big opportunities in private credit,” Rader concludes.