The Alternative Credit Council (ACC), an affiliate of the Alternative Investment Management Association, in partnership with Dechert, recently released a report (Report) based on in-depth interviews with leading figures in the private credit industry and a survey of 60 private credit managers representing $260 billion of deployed private credit capital and an additional $116 billion in dry powder. A recent ACC/Dechert program presented the central findings of their research, with insights from representatives from private credit firms. Jiří Krόl
, global head of the ACC, moderated the discussion, which featured Benjamin Fanger, founder and managing partner of ShoreVest Partners; Joseph Glatt
, general counsel of Apollo Capital Management, L.P.; Richard Horowitz
, partner at Dechert; Olga Kosters, head of private debt secondaries at Tikehau Capital; and Elissa Von Broembsen‑Kluever, partner and managing director at Omni Partners LLP. This two-part series summarizes the key takeaways from the presentation, with relevant information from the Report. This first article outlines the drivers of private credit’s growth; issues relating to transparency and benchmarks; fee considerations; and responsible investing factors. The second article
will explore the overall outlook for private credit. See “Current Trends and Issues in Hedge Fund Direct Lending
” (Aug. 15, 2019); and “The Current State of Direct Lending by Hedge Funds: Fund Structures, Tax and Financing Options
” (Oct. 27, 2016).