Private credit expands through bank partnerships

The discussion examines the competitive dynamics of private credit in Europe and Asia, where banks hold a dominant position in financing markets. Rather than viewing banks as adversaries, the speaker outlines a partnership model where banks originate loans, capture fees, and retain a portion while private credit managers hold the balance. This approach is presented as ROE-enhancing for banks and a logical step toward expanding capital markets in regions where securitisation remains underdeveloped.