Hamilton Lane has highlighted an opportunity for private credit amid global uncertainty caused by trade tariffs.

In a recent blog post, the alternative investment manager said that uncertainty driven by trade tensions is likely to lead to a deterioration in both business and consumer sentiment and a weaker labour market, and could open the door to recession risk.

Read more: US tariffs may create divergence in mid-market credit quality

However, because of this, the firm said investors will seek “safe” strategies like senior direct lending, while macroeconomic uncertainty will also “likely be accompanied by a widening spread environment, which will benefit private credit investors as it did in 2022.”

While the firm said it anticipates that private markets transaction activity could slow, it is optimistic that private credit will “maintain retain deal flow drivers”.

Read more: Hamilton Lane underlines opportunity in middle-market co-investment

“Companies will still demand incremental facilities and recapitalizations, and a large maturity wall remains, which will demand fresh credit capital,” it added.

It comes after a survey last month of more than 100 private equity managers found private equity portfolios are typically less exposed to tariff-sensitive sectors and business than major public equity indices.

Read more: Private equity ‘less exposed’ to tariffs than public equities