Beyond Direct Lending: Special Situations and Opportunistic Private Credit

Over the past decade, private credit has established itself as a core allocation for private wealth investors, with direct lending being the primary strategy driving the market’s exponential growth. However, as the credit cycle evolves, new opportunities are emerging beyond the traditional bounds of direct lending. One area gaining increasing attention is the segment of special situations and opportunistic private credit, strategies designed to capitalize on complexity, dislocation, and transitional capital needs.

In this article we explore why these segments of private credit are becoming increasingly relevant and how they can serve as a differentiated source of return and risk mitigation in a volatile macroeconomic backdrop.

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