BlackRock has said private credit is one of its strategic views over the next five years, as it is anticipated to earn lending share from banks.
“We think private credit will earn lending share as banks retreat – and at attractive returns,” it said in its latest markets commentary.
Read more: Hedge funds tapping private markets for higher returns
The global asset manager added that it more broadly sees both near-and long-term opportunities in private markets, which are “well suited for the capital-intensive, long-term nature of defence and infrastructure projects”.
“Private markets can also fill in the gaps created by constraints on public funding that make it more difficult to get large infrastructure projects over the line without external funding,” it added.
Read more: Private markets gaining attention in thematic investing
“That is especially the case as worries about government debt and fiscal deficits mount.”
