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https://lnkd.in/gr--ywrF The top dogs in direct lending such as Ares Management Corp. and Blackstone Inc. are deploying over half of the market’s capital, according to a new report by the Alternative Credit Council, an industry body. That’s troubling news for the legions of newcomers vying for a piece of the action of Wall Street’s hottest market. While barely a week has gone by this year without news of another asset manager seeking to break into the fee-rich area, the largest incumbents have a stranglehold over deals. About 58 percent of the total capital deployed by private credit managers globally is estimated to come from firms that lend more than $10 billion per year, according to the ACC report. “ The evident consequence of this trend is that the market is becoming increasingly concentrated in the larger lenders,” according to the report. Private lenders have swooped into a void left by banks shying away from riskier loans amid fears of an economic slowdown. In 2022, the last year for which data is available, direct lenders deployed $333 billion of cash, an increase of 60 percent over the previous year, according to estimates in the report. #mergersandacquisitions #privatecredit
