Smaller companies driving demand for private credit
Private credit is offering speed, flexibility and variety to smaller companies banks can’t match, according to East & Partners.
The smaller end of the corporate market is far more attracted to private credit than the big end of town, according to a new survey by East & Partners on the fast-expanding sector.
East found that only 16% of the top 100 enterprises expect to use private credit, and just 12% have done so. In contrast, 42% of upper commercial participants — defined as businesses with an annual turnover exceeding $100 million — expect to use private credit, with 15% having already accessed it.
“There is a really big divergence in reasons to use or not use private credit between the top 100 and upper commercial sector,” East’s global head of markets analysis Martin Smith told Capital Brief.
The findings bear out Capital Brief’s broader reporting on the sector, which suggests smaller and more niche businesses are attracted to private credit due to its flexibility compared to traditional bank funding.
