Private credit: Difference between revisions
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''Debt - non-bank lending - private markets.'' | ''Debt - non-bank lending - private markets.'' | ||
(PC). | |||
Private credit is a loan to a business that is originated by a lender other than a bank or other traditional financial institution, and is not tradable in a public market. | Private credit is a loan to a business that is originated by a lender other than a bank or other traditional financial institution, and is not tradable in a public market. | ||
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Purposes of private credit borrowings are wide ranging, including - among other purposes - asset | Purposes of private credit borrowings are wide ranging, including - among other purposes - asset backed finance and trade finance. | ||
:<span style="color:#4B0082">'''''Private credit's USP'''''</span> | |||
:"... private credit is similar to bank lending: bilateral, private, held to maturity, and on flexible terms... | |||
:'Private credit’s USP has always been the direct relationship with the borrower and ability to shape the terms of transactions,' said Jiri Krol, deputy chief executive of the Alternative Investment Management Association." | |||
:''Giving credit to private finance - Permjit Singh FCT PhD - The Treasurer - Issue 2, 2024, p18.'' | |||
== See also == | == See also == | ||
* [[Asset | * [[Alternative Credit Council]] (ACC) | ||
* [[Alternative Investment Management Association]] (AIMA) | |||
* [[Asset backed finance]] | |||
* [[Asset manager]] | * [[Asset manager]] | ||
* [[Bilateral]] | |||
* [[Credit]] | |||
* [[Credit institution]] | * [[Credit institution]] | ||
* [[Credit risk]] | * [[Credit risk]] | ||
| Line 26: | Line 41: | ||
* [[Loan]] | * [[Loan]] | ||
* [[Packing credit]] | * [[Packing credit]] | ||
* [[Private]] | |||
* [[Private bond]] | |||
* [[Private equity]] | * [[Private equity]] | ||
* [[Regulation]] | * [[Regulation]] | ||
| Line 31: | Line 48: | ||
* [[Trade credit]] | * [[Trade credit]] | ||
* [[Trade finance]] | * [[Trade finance]] | ||
* [[USP]] | |||
==Other | ==Other resources== | ||
*[https://acc.aima.org/research/borrower-s-guide-to-private-credit.html Borrower's guide to private credit - UK edition - Alternative Credit Council | *[https://acc.aima.org/about-acc/about-private-credit.html Alternative Credit Council (ACC) - Private credit explained] | ||
*[https://acc.aima.org/research/borrower-s-guide-to-private-credit.html Borrower's guide to private credit - UK edition - Alternative Credit Council] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
Latest revision as of 16:19, 6 December 2025
Debt - non-bank lending - private markets.
(PC).
Private credit is a loan to a business that is originated by a lender other than a bank or other traditional financial institution, and is not tradable in a public market.
Private credit is also sometimes known as direct lending, alternative lending, non-bank lending or private debt.
Borrowers are typically small and medium sized enterprises, or smaller listed companies.
Lenders are typically regulated asset managers.
Purposes of private credit borrowings are wide ranging, including - among other purposes - asset backed finance and trade finance.
- Private credit's USP
- "... private credit is similar to bank lending: bilateral, private, held to maturity, and on flexible terms...
- 'Private credit’s USP has always been the direct relationship with the borrower and ability to shape the terms of transactions,' said Jiri Krol, deputy chief executive of the Alternative Investment Management Association."
- Giving credit to private finance - Permjit Singh FCT PhD - The Treasurer - Issue 2, 2024, p18.
See also
- Alternative Credit Council (ACC)
- Alternative Investment Management Association (AIMA)
- Asset backed finance
- Asset manager
- Bilateral
- Credit
- Credit institution
- Credit risk
- Creditworthiness
- Debt
- Facility
- Finance
- Listed company
- Loan
- Packing credit
- Private
- Private bond
- Private equity
- Regulation
- Small and Medium-sized Enterprises (SMEs}
- Trade credit
- Trade finance
- USP
