The private lending industry has transformed from a niche alternative into a global financial powerhouse, with assets under management surging from roughly $375 billion in 2008 to more than $2 trillion by 2023—and is projected to reach $3 trillion by 2025. This explosive growth is driven by two critical shifts:
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Post-2008 regulations forced banks to pull back on traditional lending, opening the door for private lenders to fill funding gaps.
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Investors seeking stable yield turned to private debt during prolonged periods of low interest rates, including the pandemic and periods of rate volatility.