1. Drought in Private Credit's European Heartland Coming to an End.
- Author
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Hidalgo, Kat
- Subjects
INVESTORS ,SMALL business ,PRIVATE equity ,DROUGHTS ,FINANCE companies - Abstract
According to a report by Deloitte, deal flow in private credit is rebounding after a slump earlier in the year. In Europe, deal volumes increased by 24.3% in the third quarter compared to the second quarter, although they are still 23% lower than the same period last year. Investors are attracted to the private credit market due to double-digit returns, which have surpassed those available in private equity. The report suggests that central banks winding down tight monetary policies will restore certainty to deals. However, the US may experience subdued activity due to the government's antitrust stance. The recovery in private credit is not without risks, including geopolitical difficulties and the potential for sharp revaluations in credit markets. The report also highlights that mid-sized companies in the private credit market are still struggling. [Extracted from the article]
- Published
- 2023