New horizons in private credit: Why infrastructure debt stands out today

For much of the past decade, private credit has benefited from a highly supportive backdrop. Stable inflation, low interest rates, ample liquidity, and a retreat of banks from many areas of lending created a favourable investment climate – which was matched by rising demand from investors seeking alternative sources of yield. This in turn drove strong inflows and rapid growth in assets under management, particularly within corporate direct lending. That environment is changing. Today’s market backdrop is defined by heightened geopolitical uncertainty, structurally higher inflation risks...