The McKinsey Global Private Markets Review 2018, “The rise and rise of private markets“, puts the growth of private debt as an investment class in Europe at 26.2% (year-on-year change).
The analysis stresses that this growth is not being driven by banks. On the contrary, alternative lending has taken over the role of traditional financial institutions in funding SMEs.
At the same time, institutional investors have become more aware of the attractive investment opportunities offered by private debt. According to the report, pensions funds “… are pinched for returns”. Private debt offers scope to reallocate some of their assets.
Institutional investors are discovering the opportunities offered by private debt.