2025 Outlook: Direct Lending

Streaming Income - A Podcast from Barings

This episode is part of our 2025 Outlook series. Here our experts in private credit – across the U.S., Europe, and Asia Pacific – discuss and debate the prospects for middle market direct lending in the year ahead.

Episode Segments:

(02:43) – Misconceptions about direct lending

(04:30) – The impact of Trump’s victory on private credit markets

(07:20) – The outlook for M&A activity across the globe

(11:40) – The health of middle market issuers in a higher-for-longer environment

(17:26) – Capital solutions opportunities outside of traditional middle market direct lending

(18:50) – Private equity sponsor trends heading into 2025

(22:28) – What pricing, terms, structures and documentation look like today globally

(26:30) – Understanding the competitive backdrop and the impact of new entrants

(31:21) – A conservative approach to APAC private credit

(33:06) – Predictions (or Non-Predictions?) for 2025

Certain statements about Barings LLC made by the participants herein may be deemed to be “testimonials” or “endorsements” as those terms are defined in rule 206(4)-1 under the Investment Advisers Act of 1940, as amended. Participants were not compensated in connection with their participation in this program, although in certain cases they are investors in Barings LLC sponsored vehicles. These investments subject such participants to potential conflicts of interest in making the statements herein.

IMPORTANT INFORMATION

Any forecasts in this podcast are based upon Barings’ opinion of the market at the date of preparation and are subject to change without notice, dependent upon many factors. Any prediction, projection or forecast is not necessarily indicative of the future or likely performance. Investment involves risk. The value of any investments and any income generated may go down as well as up and is not guaranteed. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Any examples set forth in this podcast are provided for illustrative purposes only and are not indicative of any future investment results or investments. The composition, size of, and risks associated with an investment may differ substantially from any examples set forth in this podcast. No representation is made that an investment will be profitable or will not incur losses.

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