Lower Middle Market Direct Lending

Over the past decade, private credit has emerged as an established high-growth asset class due to the favorable supply/demand characteristics and attractive fundamentals as nonbank lenders continue to disintermediate traditional lending markets. We believe borrowers prefer the customized funding solutions, certainty of execution and flexibility that private credit offers. For investors, the higher interest rate environment has increased private credit’s appeal as floating-rate loans offer higher risk- adjusted returns compared to other asset classes.