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LPs have been increasingly shifting their private credit portfolios away from unsecured direct lending toward loans secured with a wide array of assets that are easy to value and can quickly be sold for cash.
Although markets widely expected rates to remain unchanged, investors had reportedly assigned roughly a one-in-three probability of a surprise hike before the meeting.
Rising operational costs and fundraising challenges are pushing smaller firms toward consolidation, including full acquisitions, minority stake sales and platform integrations.