1 / 5

Hear What Ajay Srinivasan Has Got To Say About The Private Credit Landscape

The asset class totalled around 2 trillion USD globally by the end of 2023. This is roughly 10 times larger than it was in 2009. The rapid growth in this sector has grabbed the attention of various financial services experts, including Ajay Srinivasan, the former Chief Executive Officer of Aditya Birla Capital.

ajaysrinivasan
Download Presentation

Hear What Ajay Srinivasan Has Got To Say About The Private Credit Landscape

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Hear What Ajay Srinivasan Has Got To Say About The Private Credit Landscape

  2. Private credit has been one of the most rapidly growing segments of the financial sector over the past few years. The asset class totalled around 2 trillion USD globally by the end of 2023. This is roughly 10 times larger than it was in 2009. The rapid growth in this sector has grabbed the attention of various financial services experts, including Ajay Srinivasan, the former Chief Executive Officer of Aditya Birla Capital. So, let us have a look at how the private credit market has grown over the years and what Ajay Srinivasan’s take on the asset class is.

  3. The Growth In The Private Credit Market: According to Ajay Srinivasan news, private credit in the U.S. has grown exponentially. The growth has been from roughly 46 billion USD in 2000 to about 1.7 trillion USD currently. The initial trigger was the tighter regulatory regime for banks post the Global Financial Crisis, but that tailwind gained momentum from the growth of private equity. This further gained momentum with leveraged debt financing for acquisitions, investors chasing yield in a low-rate world and greater investor democratisation.

  4. The Main Reason Behind The Private Credit Landscape Growth: Private credit growth has largely been driven by direct lending. This is a strategy which has been mainly fuelled by the bank’s withdrawal from some segments and private equity’s rapid expansion. These days, the asset class has already started to expand into new areas. It has started to include a wide variety of asset bases. This has brought about a significant impact on the private credit market. From retail and insurance capital pools, various sectors have experienced enhanced private credit exposure in the US.

  5. The New Challenges And Opportunities: The recent changes in the private credit landscape have brought about both opportunities and challenges for the market participants across the lending landscape. Now that the banks are facing various regulatory changes and the competition from non-bank players has increased, there is a potential for accelerated transition from bank balance sheets to non-bank entities across a broad range of assets and borrower types.

More Related