Private credit comes front and center

Tuesday, Sep 13th 2022

Commentary

Wall Street banks are being outhustled

Titan’s Takeaway: After ceding power to alternative asset managers, banks are clamoring to get back into one private credit and direct lending after it evolved into a trillion-dollar powerhouse. Meanwhile, investor demand continues to fuel the growth of the burgeoning asset class, officially stamping direct lending as a core part of the financial ecosystem. 

Wall Street banks may still have the brand recognition, but they are getting out-hustled in at least one area of global capital markets: private credit. Banks that moved on from lending to middle market companies following the 2008 financial crisis are now attempting to regain ground after ceding power to alternative asset managers such as Carlyle, Blackstone, and Apollo.

As banks refocused their efforts on investment banking and consumer divisions, the void allowed these large asset managers the ability to lend directly to companies - circumventing the investment banks while benefiting from the higher yield that private credit may provide.

The returns have remained steady, demand has continued to grow and the industry has ballooned to over $1 trillion of assets as a result. The inflow of capital chasing competitive yield has allowed managers to service multi-billion dollar loans, the kinds of transactions typically would kill to run. 

Competition from Wall street’s biggest banks is looming, but alternative asset managers still have two key advantages: speed and flexibility. Asset managers like Carlyle can quickly facilitate a loan for a company with lower levels of red tape while meeting the company where they are in an effort to provide the most advantageous and flexible terms possible. 

Once a sector abandoned for its regulatory headache and meager impact to banks’ bottom lines, direct lending has evolved into a trillion-dollar powerhouse. Investor demand is fueling the growth of private credit as it continues to serve a meaningful place in a long-term investor’s tool kit.

We’re excited that many Titan clients can now allocate capital to this burgeoning asset class.

Back to Research ↗

Learn with titan

Investment articles and resources

Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.

Private Equity vs. Investment Banking: What’s the Main Difference?


What Is an Investment Advisor?


Financial Advisor vs. Financial Planner: What’s the Difference?


What Is the Securities and Exchange Commission (SEC)?

Ready to become a client?

It’s time to give your wealth a future.

We'll be right here by your side.

Various Registered Investment Company (“RIC”) products offered by third-party fund families and investment companies are made available on the platform. Certain of these RIC products are offered through Titan Global Technologies LLC. Other RIC products are offered to advisory clients by Titan. Before investing in such RIC products you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information.

The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.

Cryptocurrency advisory services are provided by Titan. Cryptocurrency trading is provided by Apex Crypto LLC. Apex Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Apex Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Titan Global Technologies LLC. Please ensure that you fully understand the risks involved before trading: www.apexcrypto.com/legal.

Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.

© Copyright 2022 Titan Global Capital Management USA LLC. All Rights Reserved.

Legal

Privacy

Terms

Careers

Press

Help Center