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Private Credit Market Evolution Creates Investment Openings

Private credit has matured into a key asset class, with investor allocations on the rise. 2024 promises exciting opportunities as banks pull back on lending, potentially leading to a surge in private transaction volume. However, a potential economic slowdown underscores the importance of manager skill in navigating credit risk.

Investors should explore multiple avenues. Direct lending remains a cornerstone, while specialty finance (asset-backed lending) offers diversification and strong return potential. The commercial real estate market may see renewed activity, and the global energy transition continues to drive demand for financing of renewable energy projects.