Private Credit
Private credit has rapidly emerged as one of the fastest-growing segments in global finance, expanding nearly tenfold since 2009 to reach an estimated $2 trillion by the end of 2024. While it remains a relatively small portion of the broader fixed-income market, private credit has consistently outperformed traditional bank and public lending solutions, offering investors greater flexibility and tailored financing structures.
Historically dominated by direct lending, the private credit market has been propelled by two key factors: the retreat of banks from leveraged lending and the explosive growth of private equity. However, as interest rates rise and private equity deal activity slows, private credit is evolving beyond direct lending into a wider range of asset-backed financing structures. This diversification presents new risks—but also new opportunities that traditional insurers have been slow to address.
At Matrix Global, we specialise in bridging this insurance gap with tailored risk solutions designed specifically for private credit investors. Our expertise allows us to structure innovative insurance products that enhance capital efficiency, de-risk transactions, and provide greater certainty in a rapidly evolving market.
Specialist Insurance Solutions for Private Credit:
- Net Asset Value Wrapper – Protecting NAV-based financing structures, ensuring stability for portfolio-backed lending.
- Non-Payment Insurance – Mitigating credit risk by covering loan defaults, providing greater security for lenders.
- Residual Value Insurance – Securing the future value of underlying assets at the end of a financing term.
- Insurance Wrappers – Customizing insurance solutions to improve credit quality and enhance financing terms.
With the private credit market expanding into more complex financing strategies, risk mitigation has never been more critical. Matrix Global empowers investors with specialised insurance solutions that traditional insurers overlook, ensuring that private credit firms have the protection they need to grow and succeed.
Contact us to explore how our structured insurance solutions can support your private credit strategy.
Contact Brad McGill, Managing Director Capital Markets
E: bmcgill@matrixglobalusa.com
T: +44 (0)203 457 0916
M: +44 (1)205 835 2875