Financing the Economy 2023 Research Report

Financing the Economy 2023 is a research report produced by the Alternative Credit Council in collaboration with SS&C Technologies. The report focuses on the performance of private credit strategies amid rising interest rates and macroeconomic challenges. It outlines significant growth in private credit lending, with an estimated $333 billion deployed in 2022, primarily by larger firms. The report details how higher interest rates have impacted risk management practices and creditworthiness assessments among private credit managers. It also discusses the role of leverage in private credit, noting that a substantial portion of firms do not utilize financial leverage. Additionally, the report highlights liquidity risk management practices and the various structures through which capital is invested in private credit strategies. The findings are based on a survey of private credit managers and investors, providing insights into industry trends and challenges. The report serves as a reference for investors and policymakers regarding the evolving landscape of private credit as an asset class.