Private credit plays a crucial role in the capital landscape, especially for firms opting for non-traditional bank financing.
Capital flows between banks, private credit firms, FinTechs, and end customers are becoming more intertwined, posing risks and rewards across this ecosystem.
Recent data from the Boston Fed indicates that large banks are increasing their lending exposure to private equity and private credit firms, raising concerns about financial stability.
The growth in private credit is evident in various industries like AI, with banks increasing their private credit transactions, and FinTechs like SumUp securing significant loans.