Basel Revisions Open Door to Private Debt

Ongoing revisions to Basel III framework may encourage more asset-backed and traditional lending from private debt funds taking bank market share, but the opportunity may not be as easy as expansion of direct lending strategies post-GFC.

• Banks may need to increase their capital overall and change lending decisions, creating new partnerships with private debt funds as a result

• New lending opportunities are already being investigated by private debt funds and investor interest in asset-backed lending is at a high point according to our survey data

• Change within lending universe may force policy-makers to implement mandatory and broad-based disclosure rules in the future