The Alternative Credit Council (ACC), together with global law firm Dechert LLP, has today published its fifth annual flagship Financing the Economy paper. This research draws together insights from 30 industry leaders and data from 60 firms managing close to US$400 billion in private credit assets and identifies key trends that will define the future of private credit.
Private credit will continue to expand across both existing strategies and into new markets, according to new research carried out by The Alternative Credit Council (ACC) and global law firm Dechert for the ACC’s fifth annual Financing the Economy paper.
This research draws together insights from 30 industry leaders and data from 60 firms managing close to USD400 billion in private credit assets and identifies key trends that will define the future of private credit.
A total of 68 per cent of survey respondents plan to increase their lending in the SME/mid-market space, despite the sense that this core market is suffering from saturation. Distressed, real estate and asset-backed lending are among the other more popular growth strategies.
The European and US markets continue to be the biggest source of growth for private credit. Half of respondents expect to invest more capital in Europe while 43 per cent expect to invest more in the US market. A third of managers are targeting future expansion in the Asia Pacific region, with almost 20 per cent specifically targeting either India or China. The report also indicates that interest in the UK market appears to be cooling slightly.
