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Happy Friday and welcome to another edition of Axial Radar!
This week, we’re revisiting the topic of direct lending (also known as private credit). By no means a new investment strategy, direct lending activity picked up serious steam over the last 12 months. Funds targeting direct lending opportunities raised almost $70B by the end of 2021 – more than 2019 and 2020 combined.
What’s behind the sudden interest in private credit?
At the onset of the pandemic, businesses increasingly began turning to private credit as a quicker, more flexible alternative to traditional bank loans. The consistent performance and resilience of those private loans have led institutional investors to increase their exposure to the private credit asset class. In this week’s featured Industry Trends article (bottom of the newsletter), we take a look at why the direct lending opportunity in the LMM in particular is so enticing.
Our featured buy-side members this week include a family office with over 100 closed acquisitions and two unique private investment firms. On the sell-side we’ll introduce you to a 36 year old investment bank and a middle market M&A advisory firm.
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