The booming $1.6tn private credit market has largely been powered by corporate lending to date, but KKR & Co says investors are beginning to pour money into other niches — particularly asset-based debt, according to a report by Bloomberg.
The report quotes KKR’s Global Head of Private Credit Dan Pietrzak as saying in an interview that: “We’re starting to see more awareness of asset-based finance and are seeing investors allocating to asset-based finance assets for the first time. Direct lending is unlikely to grow as fast because it’s grown so much already.”
However, Pietrzak believes that despite a slowdown and the rise in popularity of other niches, direct lending will remain “the driving force” of private credit. “It got a meaningful head start and investors are more comfortable allocating to it as it’s perceived to be more mature than other areas of private credit,” he said.
