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Private Credit

All to Play for in 2024

September, 2024 – 2 min read

In this PDI Q&A, Bryan High discusses the trends and dynamics likely to shape direct lending through the remainder of 2024.

How is the direct lending asset class positioned headed into the second half of the year?

Direct lending continues to offer the potential for compelling risk-adjusted returns versus other asset classes. Deconstructing the basic return components, base rates have remained elevated longer than many were anticipating, and even as central bankers look to begin easing cycles in developed markets, we expect the higher-for-longer rate environment to persist through 2024 and into 2025. When combined with consistent underwriting spreads that seasoned platforms can achieve for senior secured debt, we believe the all-in yield profile for direct lending remains attractive. More generally, we expect this year’s strong performance to continue and note that direct lending returns have proven durable historically, exhibiting consistency and low volatility over long periods of time.

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Bryan High

Head of Global Private Finance

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