A significant influx of institutional capital into direct lending strategies over recent years has increased competition among lenders in parts of the market, leading to pressure on transaction structures and margins, and heightening the prospect of mispricing risk. At the same time, certain areas of direct lending remain underserved and offer attractive value in comparison. This paper explores where and how such investment opportunities exist today.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.
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