Credit funds take direct action

By Mike Peterson

Thursday, August 02, 2012

Direct lending funds are springing up around Europe. But what do managers mean by direct lending? And what returns can their investors expect?

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TAGS: Direct lending Fundraising

Comment by: Anonymous. Posted 11 years ago [2012-08-04 23:38:01]

I love the emergence of this "direct lending" and hope it takes root. One attribute, in my opinion, is that it gets lending away from bank regulatory oversight. Many would cry "shadow banking" and frown on the activity, but bank regulation has squashed this important economic activity. I'd also add that the manager will actually need GOOD CREDIT SKILLS to a much greater degree than syndicated lending or bond issuance. Finally, when net returns to investors are 10-12%, such returns will not be "stable" .... there will be bad loans as well as good loans.

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