Private Credit
How non-bank lenders quietly took over corporate lending — offering speed and flexibility that regulated banks cannot match.
For 100 years, companies borrowed from banks. Banks held capital and controlled terms. Then 2008 happened. Banks retreated. Regulators imposed capital requirements. Lending dried up. Mid-market companies couldn't get loans banks had routinely extended. A vacuum opened and private credit funds filled it. Private credit funds don't take deposits or face bank regulations. They raise capital from pensions and investors and lend directly to companies. They charge higher rates because risk in terms are longer. Companies might borrow for seven years instead of three at 9% instead of six, but the loan happens.
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