Private Lenders Raise Most High-Grade Debt Ever as Risks Rise

The biggest names in private credit have raised the most investment-grade debt ever this year, at a time when they already have record levels of cash and are fighting to stay competitive with rival banks.

The $1.7 trillion private credit market — dominated by the likes of Ares Management Corp. and Apollo Global Management Inc. — has had a stellar year. Lenders are inking multi-billion dollar partnerships with would-be competitors, bankers are leaving for lucrative private credit roles, and some foreign investors are chasing direct loans with 22% yields. All of this has led a key group of private ...