Kat Hidalgo

It’s the hottest trade on Wall Street. Everywhere you turn, money managers have upped their investments in private credit, helping the asset class balloon into a $1.7 trillion industry. But there’s one group where interest appears to already be waning — the family office.

Robert Seminara, head of Europe at Apollo Global Management Inc., says he’s seeing a sharp pick up in private equity dealmaking, predicting returns for investors getting into the asset class today will prove “very attractive.”

Institutional investors, which have traditionally made up private debt’s largest pool of money, are no longer a source of growth for the $1.7 trillion industry.

HSBC Holdings Plc’s asset management arm has launched a net-asset-value financing strategy, a fund that will help private equity firms borrow against their portfolios, its first such offering as part of an expansion of its alternative credit business.

Global Infrastructure Partners (GIP) is targeting $3 billion for a new infrastructure debt fund, according to people familiar with the matter.

Private credit will “wildly outperform” the high-yield and leveraged loan markets in a recession, James Zelter, co-president of Apollo Global Management Inc. said in an interview on Bloomberg Radio.

The good news for private credit lenders: they’re getting to work on a record number of deals. The bad news: rising dealflow hasn’t brought them the billion-dollar deals they covet most.

The good news for private credit lenders: they’re getting to work on a record number of deals. The bad news: rising dealflow hasn’t brought them the billion-dollar deals they covet most.

The Florida State Board of Administration is looking to sell a bundle of private credit stakes worth as much as $4 billion in what would be one of the largest deals of its kind, according to people with knowledge of the matter.

For years, buyout firms used controversial loans backed by their equity stakes to juice up returns in their funds. After attracting criticism from some of the same investors the practice was supposed to benefit, they are hitting the brakes.