Report

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Insights 2025 – View on Private Debt

In Insights 2025, we explore the key trends shaping investment decisions in the year ahead. In this chapter, our team shares their perspective on the evolving opportunity set in Private Debt.

View on Private Debt Summary

  • Private Debt continues to deliver attractive returns, supported by higher-for-longer interest rates and strong borrower fundamentals. However, rising capital concentration in large direct lending funds has led to spread compression and weaker credit protections, prompting a more cautious view on commoditised strategies.
  • We see compelling opportunities in non-sponsor lending, capital solutions, asset-backed finance, and specialist strategies, where complexity and sourcing advantages remain underappreciated. These areas are well-positioned to benefit from secular trends such as the withdrawal of banks and rising demand for non-dilutive financing.
  • Amid growing performance dispersion, we believe a multi-strategy, specialist-led approach will be key to capturing resilient, long-term income from Private Debt.

Click here to read our full View on Private Debt in 2025.