Has the Golden Age of Private Credit Lost its Shine? We Don’t Think So.

Amidst an evolving market backdrop, some investors are debating whether the golden age of private credit may be changing. Learn why the data suggests that private credit has reason to continue delivering its consistency of performance and attractive yields in a higher-for-longer rate environment.

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Having distributed my time across five continents in 2024, investors consistently asked me, 'Is private credit too crowded? Is too much money being raised?' I often responded in a respectful, convivial way: 'Unequivocally, no. Take a breath with me and let’s look at the fundamentals.'
Nayef Perry
Head of Direct Credit

Higher for longer

Despite three rate cuts in 2024, private credit investors are well-positioned to experience higher yields for longer, which suggests the golden age has room to run and investors have not missed the opportunity.

Credit tailwinds

A significant funding gap exists between the amount of buyout dry powder and credit origination dry powder, suggesting a supply-demand imbalance. What does this mean for private credit investors?

Consistency of performance

Bank regulation isn’t the only reason private credit continues to proliferate. Performance is a large contributor. Private credit has demonstrated positive vintage year IRR for the past 23 years and has historically outperformed its public market equivalent.

Our approach to private credit investing

During times of uncertainty, there has historically been a flight to quality, with private credit offering both yield and downside protection. Our direct credit platform is well positioned to lean into attractive opportunities as the market environment evolves. Our strategy is focused on the opportunity set within more senior components of a company’s capital structure, and with characteristics including contractual yield, shorter duration and capital preservation.

$71.4B

Deal Flow Since 2015

$8.2B

Committed Capital Across 320+ Transactions

As of 12/31/2024

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Has private credit's golden age lost its shine? Global Head of Direct Credit Nayef Perry weighs in on the trends and tailwinds supporting strong demand in the months ahead.


About Hamilton Lane

Our purpose is simple: To provide enhanced financial well-being for those who depend on us. We do that by seeking to deliver tailored, solutions-oriented private markets exposure and industry-leading client service. We’re an organization built on over three decades of client-centricity, candor and authenticity and powered by intellectual rigor and data-driven insight. 

Our commitment to serving those who depend on us has remained steadfast, while our focus on growth and transformation has only strengthened. Today, we serve institutional and private wealth investors around the world, helping them tap into the opportunities afforded by this maturing asset class.

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