Publication

Investment Perspectives - Winter 2022: direct lending, a decade on

31 January 2022

1 min

Author

Penny Cochrane

Senior Investment Research Consultant

Hymans Robertson was one of the first consultants in the UK to recognise the attractiveness of the direct lending market, where alternative lenders lend to mid-market corporates.

Now over a decade on, most of our Defined Benefit clients have exposure to the market. This article looks at how the market has evolved over the period and revisits the argument for investing in the asset class and discusses the main considerations now for our clients.

Direct lending has exploded with many investors allocating to the asset class. And it’s still growing, with more investors expecting to further increase their allocations over the coming years. While the asset class evolved in the US before the Global Financial Crisis (“GFC”), in Europe it was mainly borne out of the GFC. However, the European market is quickly catching up to the US in terms of alternative lender market share.

READ FULL ARTICLE HERE

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