LONDON, April 17 (LPC) – Private debt funds are building teams to boost their ability to syndicate loans as a flood of cash into the sector helps them to target bigger deals, drawing criticism from competing banks and peers, as well as regulators who see the shadow banking sector as a possible systemic risk.
Direct lenders filled the gap after banks pulled back from lending to small and medium-sized companies following the global financial crisis, but the influx of cash and bigger deals are encouraging them to syndicate more debt in the next step of development for the booming sector.
Private debt funds raised US$110bn in 2018 globally, after raising US$129bn in 2017, and direct lending funds focused on Europe raised 18.3bn in 2018, brin…
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