Investors Take a Global Approach to Direct Lending
The Barings’ Global Private Credit team explores the dynamic characteristics of the North American, European and Asia-Pacific markets, and explains how a global approach across the three regions could potentially help to generate income, preserve capital and achieve diversification.
The dynamic growth of direct lending over the last decade has captivated
investors and captured its fair share of headlines. North America, the largest and most mature private credit market, is estimated to be worth around $1.5 trillion today and is expected to reach nearly $2 trillion by the end of the decade. The European direct lending market is about half that size, but it is growing quickly. Developed Asia-Pacific is the smallest market by AUM, standing at around $30 billion today, according to data from Preqin, but arguably has the longest runway for growth.
While there are compelling reasons to make standalone investments in each of these regions, there are also benefits to considering a global strategy that looks across all three markets, particularly as investors’ appetite for the asset class continues to grow.
