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LPC: Institutional Demand Spurs Mid-Market Direct Lending Platforms

May 20, 2016, 08:01 AM
Filed Under: Industry News

Institutional demand for private credit is propelling capital formation in the U.S. middle market, as a flurry of newly created direct lending platforms enter the mix and existing alternative debt capital providers continue to raise money and add scale according to a recent article from Reuters.

Reuters noted, one middle-market participant that is fundraising said as much as $15 billion in new equity capital is being targeted, which combined with leverage could put purchasing power north of $40 billion over the next two to three years.

In addition to newly created platforms and investment strategies, existing managers are raising capital and building scale through separately managed accounts (SMAs) notes the Reuters article. The amount of capital being allocated by large institutional investors – such as pension funds and insurance companies – in the form of SMAs and senior loan funds managed by established lenders, could well eclipse the dollars raised by new shops, sources said.

View the entire Reuters article, LPC: Institutional Demand Spurs Mid-Market Direct Lending Platforms.

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