11 June 2024 Barometer
Research & Insights

Coller Capital’s 40th Global Private Capital Barometer, Summer 2024

Coller Capital’s 40th Global Private Capital Barometer, Summer 2024
Download the Barometer
Coller Capital’s 40th Global Private Capital Barometer, Summer 2024
LPs view senior direct lending as the most attractive credit investment opportunity

The prevailing sentiment among LPs is that senior direct lending will stand out as the most attractive credit investment opportunity over the next two years. European and North American LPs were most inclined to hold this view, with 71% and 74% respectively agreeing, compared with just 58% in the APAC region.

Mezzanine lending garnered attention as an appealing opportunity, alongside distressed debt.


Michael Schad
Partner, Head of Coller Credit Secondaries
Quote Icon
We believe the elevated rate environment and continued constraints in traditional lending, will continue to drive private credit’s expansion. Senior direct lending stands out with LPs as the most attractive asset class within the credit landscape and almost 38% of LPs surveyed plan to boost exposure in the next 2-3 years.
Michael Schad
Partner, Head of Coller Credit Secondaries

 

38% of LPs intend to boost exposure to direct lending

38% of LPs indicated their intention to increase their portfolio weighting towards direct lending. Continued retreat from traditional lending, along with a conducive interest rate environment that provides conditions for attractive returns and compelling downside protection – an attribute of the strategy – can be expected to support the strategy’s growth.

This was particularly evident among APAC LPs, with over 50% planning to increase their weighting, reflecting a trend that might align with private credit’s current stage of development across the APAC region.

Previous
NAV financing
Next
Infrastructure