Gold top: cream of direct lending biz covers up pain beneath

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By Silas Brown
08 Oct 2020

Large deals and fundraising from a clutch of elite direct lenders, alongside high profile tie-ups with sovereign wealth funds, have prompted many to characterise direct lending as enjoying a golden age. But the success of some funds looks set to come at the expense of many others, writes Silas Brown.

Direct lending’s upper echelons enjoyed a ripe summer, plucking companies for their portfolios that typically fund in leveraged finance markets. Banks, fearful of underwriting risk, stepped further back from financing higher yielding credits, giving direct lenders the chance to step in and take business.  

“At a time of ...

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