VPC - Asset-Based Finance: Private Credit's Key Diversifier

2024-05-21 03:20:00 ET

Summary

• Private capital is increasingly being used to finance consumer spending.
• Banks are lending less to many areas of the real economy, including the most important one: consumers, who accounted for nearly 68% of US GDP in the first quarter.
• For investors, we think this is an opportunity to boost return potential and diversify private credit portfolios.

By James Sackett

Private capital is increasingly being used to finance consumer spending.

Banks are lending less to many areas of the real economy, including the most important one: consumers, who accounted for nearly 68% of US gross domestic product in the first quarter. For investors, we think this is an opportunity to boost return potential and diversify private credit portfolios....

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