Private Credit Plots Expansion in Bid for $40 Trillion Prize
- Firms growing in asset-backed finance, investment-grade debt
- The goal is to push the industry past direct lending
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Private credit firms want more than corporate lending. The largest are laying the groundwork to finance everything from auto loans and residential mortgages to chip manufacturing and data centers in an effort to swell the size of the market by the trillions.
It’s part of a race to grab a bigger share of a universe of potential investments that Apollo Global Management Inc. has said could be as large as $40 trillion. The staggering estimate is tied to a boom in private investment-grade debt related to infrastructure and asset-backed finance. Those areas will be top priority for firms next year, according to 10 managers interviewed by Bloomberg News.