By: Drew Schardt, Head of Private Credit at Hamilton Lane

Private credit continues to grow as an asset class within the private markets. When we look at private debt fundraising by year, you can see that the fundraising amounts continue to increase and diversify.

As we look at a new year with potential for new market conditions, how are investors thinking about private credit? Hamilton Lane’s Head of Private Credit, Drew Schardt, feels that as we venture later into the current economic cycle, there continues to be lots of noise, chatter and commentary in two notably distinct camps:

1. Debating whether the current environment will continue to extend the status quo of growth seen over the past ~10 years, or
2. Declaring that the warning signs are flashing red and the markets are bound for a correction, recession or worse in the not-too-distant future.

Schardt continues by outlining five key considerations for 2020, which address some of the pros and cons of this cycle debate while also taking a closer look at private credit as an asset class to explore how it might fare. Spoiler alert: He thinks it is a pretty good and relatively more predictable spot to be in when the going gets tough – whenever that may be.

To learn more about the key considerations for private investors, read Hamilton Lane’s white paper, “Rainy Days, Credit Quality and Market Conditions.” To access, please click here.