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 .