Private Credit’s Dancing in the Streets Gets Wilder
Hedge funds and PE are reaping the rewards of the boom amid tighter bank regulation, says Jamie Dimon. And it’s not over yet.
Private credit boom.
Photographer: Marco Bello/BloombergWhen asked about how tighter regulations affect banks’ business models, JPMorgan Chase & Co.’s Chief Executive Officer Jamie Dimon commented that it was great news for hedge funds and private equity firms. “They’re dancing in the streets,” he said about his non-bank rivals on Friday during an earnings call with analysts.
These days, when companies want to borrow money or dealmakers need to finance a buyout, they often bypass public markets and investment banks and go straight to private lenders. Already, private credit as an asset class has grown to $1.5 trillion, bigger than high-yield corporate bonds or leveraged loans.