Report highlights

• Private credit managers continue to lend: Private credit managers expect to lend over USD100bn to SMEs and mid-sized businesses during 2020.
• Investor appetite for private credit remains undiminished: The disruption to the economy during 2020 has created demand among investors for assets that can generate income, provide diversification or act as a hedge during equity bear markets.
• Private credit managers have demonstrated their value to borrowers: Non-bank lenders have been vital sources of finance to borrowers during 2020, particularly those who are outside the typical risk appetite of banks or were unable to access government liquidity schemes.
• Flexibility is a prized asset: Investors and private credit managers are positioning themselves to adapt to the greater range of lending opportunities they anticipate in 2021.
• Not all private credit managers are created equally: The impact of Covid-19 has been uneven across different regions and sectors within the economy, but it has also highlighted differences in deal origination, documentation standards and risk management capabilities within the sector.
• Raising capital to support the recovery: Private credit managers continued to raise capital effectively during 2020, with newer funds largely being an evolution of existing strategies.