Private Equity Giants Transform into Credit Powerhouses
Private credit has emerged as a significant force in the RWA space, growing from $500B to $2T in the last decade. This growth is driven by traditional banks' inability to serve SME needs effectively.
Key developments:
- Faster execution and customized terms
- Floating rate income opportunities
- Enhanced capital access for SMEs
- High risk-adjusted yields for lenders
The transformation of PE firms into credit providers signals a shift in institutional finance. This trend aligns with the growing intersection of traditional finance and blockchain technology, particularly in lending markets.