Non-Sponsored Direct Lending Fuels Main Street America’s Comeback - By Z2 Capital Partners

Since the end of the Great Financial Crisis in 2008, private credit has grown approximately 10-fold into a household investment strategy (from $230 billion to more than $2 trillion), which is now comparable to the leverage loan ($1.4 trillion) and high yield bond ($1.3 trillion) markets, according to the Federal Reserve. Institutional investors, governments, and sophisticated individuals have piled into the asset class, generating low double-digit net returns while investing in senior secured debt. Investors often believe private credit to be synonymous with private equity-backed LBO financings, but private credit as an asset class has many strategies which are frequently overlooked.

By Scott Gold, Jake Sussman, and Andy Cahill

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