Private Credit & Alternative Finance
When banks pulled back from lending after the 2008 financial crisis, private credit firms stepped in — lending directly to mid-size companies at higher rates and with fewer restrictions. The asset class has grown from under $500 billion in 2010 to over $1.7 trillion today, and some forecasters see it reaching $3.5 trillion by 2030. For equity investors, the asset managers running these strategies are among the most profitable businesses in finance.
The world's largest alternative asset manager — $1 trillion in assets across private equity, real estate, private credit, and hedge funds. Its private credit platform is one of the fastest growing. Blackstone's fee-related earnings are highly predictable and grow with assets under management.
Pioneered leveraged buyouts and has since built one of the largest private credit platforms in the world. Its credit business now manages more assets than its private equity business. KKR is systematically turning individual retail investors into private credit customers through new fund structures.
Apollo runs the world's largest private credit strategy. Its Athene insurance subsidiary provides a captive pool of long-duration capital to deploy into private loans. This insurance-plus-private-credit model is Apollo's structural competitive advantage.
Specialises in private credit — direct lending is its largest and most profitable business. Serves middle-market companies that are too small for investment banks and too large for traditional bank loans. Ares is the closest thing to a pure-play on the private credit boom.
The largest publicly traded Business Development Company (BDC) — essentially a listed private credit fund. Lends directly to US mid-market companies and passes most income through as dividends. Yields typically 9-11%, making it a popular income investment.
Scores 9/10 for Alternative Assets.
Scores 9/10 for Credit Markets.
Scores 9/10 for Credit Markets.
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