February 1, 2023
Head of Origination, Bobby Molina, spoke with Private Debt Investor on the growing LP appetite for private credit allocation in 2023. He noted, “We have seen a lot of innovation and diversity growing up in private credit, which is no longer so dominated by mid-market direct lending strategies. We now identify some 26 different strategies within private debt, and that diversity and opportunity to invest in less crowded areas has allowed LPs to earn higher returns. That does not mean managers are taking on higher risk to generate those higher returns, just moving into less competitive markets.” As the article mentions, “investors are also more optimistic about the outlook for the asset class than they had been: 37 percent expect private debt to exceed benchmarks in the next 12 months, up from 21 percent in 2022.”
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