Blog Post
Octus on Credit: Private credit ready to go on the offensive as investors look for diversification
Oscar Laurikka, Head of Private Credit & Deal Origination - Europe
Direct lending has become the dominant segment of private credit. That much is obvious from this week’s panel discussions in Berlin as the global private capital industry descends on the city’s Intercontinental Hotel for Superreturn 2025.
This position is well deserved. Direct lenders have now weathered their share of macroeconomic shocks and come out the other side and there is still more growth in store. Especially as the larger managers figure out how to tap private wealth and retail channels, an investor base which one panellist said is currently just 5% of private credit AUM but could be 20% by 2029.
But for those investors that were early adopters of direct lending, they are now on the hunt for higher risk strategies. Both to achieve a bit of additional yield and to diversify away from a part of the market which is beginning to show a lot of overlap as club deals become the norm.
Newer and emerging areas of private credit such as ABL, secondaries, NAV finance, fund sub lines, litigation finance and others have all been hot topics of conversation in Berlin this week, and could well enjoy their own periods of growth in coming years.
In shores further afar, Octus Americas is launching its inaugural Deal Origination Pipeline Weekly this Friday, available only to Americas Private Credit and Deal Origination Insights subscribers. To request access, click here.
This publication has been prepared by Octus, Inc. or one of its affiliates (collectively, "Octus") and is being provided to the recipient in connection with a subscription to one or more Octus products. Recipient’s use of the Octus platform is subject to Octus Terms of Use or the user agreement pursuant to which the recipient has access to the platform (the “Applicable Terms”). The recipient of this publication may not redistribute or republish any portion of the information contained herein other than with Octus express written consent or in accordance with the Applicable Terms. The information in this publication is for general informational purposes only and should not be construed as legal, investment, accounting or other professional advice on any subject matter or as a substitute for such advice. The recipient of this publication must comply with all applicable laws, including laws regarding the purchase and sale of securities. Octus obtains information from a wide variety of sources, which it believes to be reliable, but Octus does not make any representation, warranty, or certification as to the materiality or public availability of the information in this publication or that such information is accurate, complete, comprehensive or fit for a particular purpose. Recipients must make their own decisions about investment strategies or securities mentioned in this publication. Octus and its officers, directors, partners and employees expressly disclaim all liability relating to or arising from actions taken or not taken based on any or all of the information contained in this publication. © 2025 Octus. All rights reserved. Octus(TM) and the Octus logo are trademarks of Octus Intelligence, Inc.