Private credit has become an increasingly popular alternative investment over the past decade. As traditional fixed income offers low yields, investors turn to private credit for higher returns. The private credit market reached over $900 billion in 2020 globally. With the growth of private credit, more asset managers have entered this sector and launched private credit funds. Here is a list of the top private credit investing companies in 2020.
Major private credit firms with large AUM
Some of the largest private credit managers include Ares Management, Blackstone, Apollo Global Management, Oaktree Capital, and KKR. These alternative asset managers run multi-billion dollar private credit funds across strategies like direct lending, distressed debt, mezzanine financing, and special situations. For example, Ares manages over $70 billion in private credit assets. Apollo’s credit AUM exceeds $260 billion globally. The scale and track record of these established firms make them key players in private credit.
Private credit units of investment banks
Many Wall Street banks have also built out their private credit capabilities. Goldman Sachs Asset Management, Morgan Stanley Investment Management, and Citi Private Capital Group offer private credit funds to clients. These bank-owned asset managers leverage the deal sourcing and credit analysis expertise of their investment banking groups. GSAM manages over $60 billion in private credit strategies for institutional investors.
Mid-size private credit specialists
In addition to mega asset managers, there are a number of mid-size private credit specialists focused purely on private lending. Golub Capital, Monroe Capital, and Audax Group are examples. These managers run smaller funds under $5 billion and specialize in niches like middle market direct lending. Therefore, they fill out the spectrum of private credit firms catering to different investor needs.
Private credit arms of insurance companies
Some insurance companies have also established in-house private credit investment teams. MetLife Investment Management, Prudential Financial, and Lincoln Financial all manage private credit funds. Insurance companies invest in private credit on behalf of their general account assets to seek higher risk-adjusted returns. Their long-term liability profile makes them natural lenders in the private credit space.
In summary, private credit in 2020 is an industry with diverse players. Large alternative asset managers, investment bank asset management arms, mid-size specialists, and insurance asset managers are all active in private credit investing. As the private debt market continues to grow, this landscape of private credit firms will keep evolving.