Investors favor private credit amid muted dealmaking: AXA IM Alts

TOKYO — Investors worldwide are increasing exposure to private credit as they await dealmaking activity to pick up, according to AXA Investment Managers Alternatives.

Private credit’s latest boom started during the COVID-19 pandemic, when most central banks rapidly raised interest rates to combat inflation. The hikes rendered existing bank loans unprofitable, making space for private credit funds to step in with new financing.