Private credit set to rise

Private credit’s growth trajectory is likely to continue rise as more investors better understand how credit strategies can be an attractive way to access emerging opportunities – and get increasingly comfortable with the risk-return profile on offer.

This according to recent research from the Emerging Markets Private Equity Association (EMPEA). There has been a rise in institutional investor interest, with nearly half of all LP respondents, 47%, in  EMPEA’s 2018 Global Limited Partners Survey indicating plans to begin or expand investment in emerging private credit strategies. This is up from 24% in 2014.

While interest in private credit is demonstrable across all types of investors, the development finance institutions (DFIs) are leading the charge. In 2018, 72% of DFIs and government agencies indicated plans to begin investing or expand their investment in emerging private credit—the highest proportion of any institution type.

See full report here .