Direct Lending

A market repricing tied to AI disruption fears is forcing private equity and credit investors to reassess exposure to one of their most crowded sectors.

Yield spreads are compressing, PIK use is rising, and even top lenders admit the easy-money era is ending.

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.