Global investment management company BlackRock Inc. projects a significant expansion in the global private debt market, anticipating it to reach roughly $3.5 trillion by 2028. This outlook, presented in a company note, represents one of the more optimistic stances on the industry’s growth prospects.
The firm attributes these expectations largely to what it sees as “tectonic shifts” taking place within financial markets. Specifically, the increasing trend of borrowers turning to private funds for financing, a move prompted by more cautiously lending practices adopted by some banks.
BlackRock’s head of macro credit research, Amanda Lynam emphasizes this point. She notes a corresponding expansion in the private debt market’s ability to compete directly with public debt markets. BlackRock’s prediction corresponds to an annual growth rate of 15% for this asset class.
The prediction illustrates a continuing shift in the world of finance, adding to debates concerning the mix of public and private debt and how these two forms of borrowing compete with, and complement, one another.
For more detailed coverage, please read the original article at Bloomberg Law.