The Wealth Advisor’s Post

Big Moves in Private Credit! 📈 JP Morgan just tagged the private credit market at a whopping $3 trillion! For middle-market CFOs, this means more options beyond traditional banks. Flexible, efficient, and tailor-made for growth—alternative lending is where it’s at. Stay ahead of the curve and explore how these innovative financing solutions can fuel your company’s ambitions. #PrivateCredit #AlternativeLending #MiddleMarket #CFO #BusinessGrowth

Sharing some #markets coverage here, via Reuters, for pre-MDW light reading. For those wondering about those record #FICC financing revenues from our last couple quarterly earnings, here’s a peak under the tent at what’s partially driving our growth. At Goldman Sachs’ Investor Day last Feb, we highlighted increasing the durability of our global banking and markets revenues through financing as a key strategic priority. Here we are, showing and proving. https://lnkd.in/e-S-NHDN

Wells Fargo Head of Asset-Based Lending Kurt Marsden sheds light on how CFOs are navigating rising costs by leveraging their assets. Read more in The Wall Street Journal’s CFO Journal.

A growing number of banks are joining the lucrative private credit business, but can they make their mark in an already busy marketplace? In the last six months, banks such as Wells Fargo, Deutsche Bank, Societe Generale and Rabobank have all launched private credit initiatives—either independently or in partnership with established operators. Media reports have also speculated that Citi, Barclays and Nomura could soon enter the fray and that JP Morgan plans to expand its existing private credit strategy. It’s already a $1.5 trillion industry that has more than doubled in size since 2016, according to PitchBook’s latest Global Private Market Fundraising Report. Direct lending funds—vehicles focused on providing financing to corporates—accounted for nearly a third of global private debt AUM as of the end of March.

Of the traditional "bank" platforms, Morgan Stanley is one that has been in the private credit game for a long time. Investing out of the asset management side of their platform, the business feels / acts relatively distinctly from the traditional investment bank / traditional bank loan products / syndicated products. It's still unclear how the new bank entrants to private credit will organize their businesses -- this is just one example. #privatecredit https://lnkd.in/eBsPRgbw

It’s been a positive start to 2024, and going into the second quarter our keywords for the European private credit markets are resilience and stability. There’s a renewed confidence in market fundamentals, and we’re paving the way to see a resurgence in new buyout activity before the end of the year.    Read the full article below for the Fidelity International outlook for senior secured loans, direct lending, and structured credit from Ellie Piper, Marc Preiser, and Cyrille Javaux.  Thanks to Nina Flitman. #privatedebt #ESGinvesting https://lnkd.in/e--x2n2x

Private equity firms offering banking services to their portfolio companies is a new and growing trend. Plenty of related pros and cons. For instance, it’s a potential conflict of interest for the PE firm, as they are conceivably acting as both an investor and a lender… https://lnkd.in/eCJJZMkj #PrivateEquity #PrivateCreditIndustry #ShadowBanks #FederalReserve #USCommercialBanks

Insightful story here on our Q3 earnings.