RT Journal Article
SR Electronic
T1 Direct Lending: Evidence from European and US Markets
JF The Journal of Alternative Investments
FD Institutional Investor Journals
SP 80
OP 98
DO 10.3905/jai.2021.1.150
VO 24
IS 3
A1 Laura Fritsch
A1 Wayne Lim
A1 Alexander Montag
A1 Martin C. Schmalz
YR 2021
UL https://pm-research.com/content/24/3/80.abstract
AB Led by the growth of direct lending, private debt assets under management almost tripled over the past decade. What do we know about this shift and why it has happened? Using a proprietary dataset, the authors present new empirical facts about direct lending funds and investigate the demand and supply drivers that likely have contributed to their growth. They identify the following contributing factors to the growth of direct lending: reduced capital supply by banks due to M&As and regulation; financial innovation; changing borrower needs; changing borrower types; and a low-interest-rate environment.