‘Private Credit Glut’ Hints at M&A Wave for $770 Billion Market

Some of the world’s largest investment firms are preparing for a shakeout in the $770 billion market for private debt, making it a prime target for takeovers.

Private equity managers, many of whom had piled into lending when banks cut back risks after the 2008 financial crisis, say the market has become so competitive that it will be increasingly difficult for smaller firms to raise money. Meeting at this week’s SuperReturn International conference in Berlin, executives were asking whether there’s a “private credit glut” after assets nearly tripled in the past decade.

“We will see consolidation in the direct-lending market ...