Private credit, also known as direct lending, has surged since the financial crisis, with a projected $2.3 trillion in global private debt assets by 2027. Middle-market lending has become synonymous with private credit, offering tailored financing options that banks can't match. However, two challenges loom: rising interest rates and a slowdown in mergers and acquisitions. Private credit remains active through add-on acquisitions. Retail investors are the next frontier, and distressed debt shows promise. The M&A slowdown is temporary, and private credit is poised for growth.

In summary, private credit's remarkable growth, despite challenges, positions it for continued success, with the potential for expansion among retail investors and in distressed debt markets, while awaiting a rebound in M&A activity.