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Private Equity

Move over, banks. Alternative asset giants plunge into private credit

Lending from asset managers has quadrupled over the past decade to nearly $2tn in assets.

Private credit’s growth spurt began after the 2008 financial crisis. As regulators tightened capital requirements for depositor-funded institutions, the banks pulled back from riskier loans.
Private credit’s growth spurt began after the 2008 financial crisis. As regulators tightened capital requirements for depositor-funded institutions, the banks pulled back from riskier loans. Photo: Illustration by Bratislav Milenkovic

When a business is repeatedly slammed by Jamie Dimon, you know it’s a big deal.

In his annual letter, the JPMorgan Chase boss tore into the private credit industry, warning that the business loans made by lightly regulated private funds will implode when the credit funds’ opaque valuations and illiquidity meet the economy’s next downturn.

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