PE, hedge funds boost loans to companies as banks shy away: Reuters
Private equity firms and hedge funds had funds under management of US$600 billion globally last year to lend to companies, a survey said this week, as they step into the shoes of traditional lenders, Reuters reported. The trend highlights a shift away from banks as a source of finance after the financial crisis, as bad loans given in the past continue to linger. It also shows how central bank money printing since the crash has helped to bolster private equity funds. That has created an industry known as private credit, where alternative providers lend at higher interest rates to companies, which may otherwise struggle to get money from a bank.
4 October 2017•2 mins read
