RT Journal Article SR Electronic T1 The Investment Opportunity in U.S. Middle Market Direct Lending JF The Journal of Alternative Investments FD Institutional Investor Journals SP 92 OP 99 DO 10.3905/jai.2017.20.1.092 VO 20 IS 1 A1 Stephen L. Nesbitt YR 2017 UL https://pm-research.com/content/20/1/92.abstract AB Direct lending to U.S. middle market companies is drawing increasing interest and capital from investors seeking high current yield and price stability. It is also attracting growing interest from asset managers seeking to replace the traditional role of banks, curtailed by regulation, in middle market financing. The authors create an index of direct lending assets dating back to 2005 to assist potential investors in understanding the return and risk for this growing asset class and how it compares to other public and private asset classes. The Direct Lending Index is then used to better understand the impact of manager fees and leverage on portfolio return and risk.TOPICS: Fixed income and structured finance, real assets/alternative investments/private equity, performance measurement, legal/regulatory/public policy