Growth of private credit has significantly accelerated since the Global Financial Crisis, when increased regulatory oversight and balance sheet scrutiny led more banks to focus on lending to only the largest borrowers. This left a tremendous opportunity for private lenders to step in and fill the void for many other companies in need of financing solutions. Private loan issuance hit a record high in 20211, and there are no signs of growth slowing down anytime soon. There are several reasons why private credit is expected to continue on its growth trajectory. For one, the pace of private equity raises hasn’t slowed, and firms continue to raise more and more capital and have significant cash reserves, or “dry powder,” to deploy.