September 25, 2023 | less than a minute read

The Pivot From Private Equity to Private Credit

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Navin Raina

Managing Director

Get in touch

Navin Raina

Managing Director

As thousands of investors gathered this week in Paris at the annual IPEM industry conference, the evolution of the historically "buyout" centric Alternative Investment Managers becomes starker. In a sign of how private equity is rapidly moving beyond its swashbuckling roots in buying large companies, the focus in Paris was squarely on how firms are positioning themselves as an alternative to the traditional banking system, capable of making multibillion-dollar corporate loans. Private Credit and Infrastructure hiring demand from our clients remains equally strong.

Some of the world’s largest private equity firms are accelerating a pivot away from mega buyouts and into businesses such as private credit as higher interest rates force them to tear up their playbooks. The grim backdrop is hastening a push that was already under way by some of the industry’s biggest names into new businesses including lending to companies, which has become more profitable as central banks have raised interest to bring down inflation. Top executives from Apollo and Blackstone were among those laying out the potential for the business, known as private credit, as well as infrastructure investing as thousands of dealmakers and investors gathered this week in Paris at the annual IPEM industry conference.