Private Debt Intelligence – 11/29/2021

Direct Lending vs. Distressed Debt


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Over time, direct lending has slowly taken over from distressed debt as private debt’s largest strategy. At the end of 2016, direct lending had AUM of $156bn compared to distressed debt’s $185bn. But since then, direct lending has grown steadily to $452bn while distressed debt had grown more slowly, hitting $277bn as of March 2021.