Bank Partnerships & Climbing the Quality Ladder in Private Credit

Private credit is rapidly evolving, reshaping investment strategies by bridging the gap between traditional banking and private markets. This week, the Akinn Group highlights key trends driving demand and innovation in this dynamic sector.

Key Trends Reshaping Private Credit

1. Demand Bifurcation Within the Private Credit Landscape

• Asset-backed finance (ABF) continues to see strong demand, both directly and indirectly.

• There is a growing focus on investment-grade (IG) and near-IG risk. Investors are increasingly moving up the quality ladder through direct investments and co-investments.

2. Increasing Interest in Bank Loan Partnerships

• Concerns over the illusory liquidity of corporate bonds are pushing investors toward bank loans.

• These partnerships offer advantages such as enhanced underwriting alignment, stronger safeguards, and oversight from regulatory institutions like the ECB.

• By leveraging banks’ existing infrastructure, investors benefit from improved security, transparency, and aligned interests.

3. Emerging Opportunities in Private Credit

• Independent credit ratings and semi-liquid vehicles are gaining momentum, adding flexibility and clarity for institutional investors.

• Industry thought leaders are discussing these shifts in depth—see Nicolai Tangen’s recent podcast episode with Marc Rowan for a broader perspective on market evolution.

Strategic Takeaways

At Akinn Group, we are at the forefront of this transformation, supporting banks and investors in building robust, quality-focused private credit strategies. As the line between public and private markets continues to blur across fixed income and equities, we see a generational opportunity for resilient and aligned investment partnerships.

Interested in discussing your private credit approach?
Reach out to the Akinn team for strategic insights and tailored guidance.

Contributing authors: Thomas Chambers & Ruben Figueiredo
Primary Contact Details: +44 (0) 203 872 1682 / TChambers@akinngroup.com