Can direct lenders now take a serious bite out of the banks?

The recent spate of deposit flight that spread panic through the banking systems of the US and Europe opens a chance for non-bank lenders to seize more of the core businesses that banks want to retain. Central bank emergency measures may have prevented the crisis from spreading, but a new phase of disintermediation has begun.

On April 11, one month after the collapse of Silicon Valley Bank sparked panic across the US and European banking systems, HPS Investment Partners, a credit-focused alternative investment firm with $100 billion of assets under management, announced the closure of Strategic Partners V, its latest lending fund.

Having set out to raise $9.5 billion, HPS succeeded in attracting $12 billion in equity commitments from institutional investors for a fund that will provide junior capital to private equity-backed as well as public companies.

Thanks for your interest in Euromoney!
To unlock this article: