Why access is more important than ever in private credit

Access matters more than ever in private credit and “may be the new alpha”, according to GCM Grosvenor.

Private credit continues to rapidly evolve as an alternative asset class, which has led to “more capital chasing fewer high-quality opportunities”, the US alternative asset manager said.

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Because of this, sourcing has become one of the most important differentiators for firms.

“Today, being able to access the right deals – often before they are broadly marketed – can make the difference between deploying capital strategically or not at all,” it said in a report.

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Several key trends have led to the growing importance of access, it said, including: record levels of private equity dry powder; private markets now dominating LBO funding, with 84 per cent of LBO financings in 2024 placed in private markets; and heightened competition among lenders.

“As a result, institutional investors increasingly seek managers who offer more than capital – they want those with the sourcing edge to access high-quality opportunities before the window closes”.

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