Bain Capital’s Lavine Sees More Consolidation in Private Credit

Further mergers are likely in the booming private credit business because the low fees earned by lenders will push smaller firms to get bigger and reap economies of scale, according to Jonathan Lavine, co-managing partner of Bain Capital.

For buyout firms on the hunt for financing, private lending has developed into a trillion-dollar alternative to banks and the high-yield and leveraged-loan markets. The sector’s fast growth makes it attractive, yet bigger firms have an advantage.

Jonathan Lavine

Photographer: Demetrius Freeman/Bloomberg

“There will be more consolidation between private credit firms, as there are so many small shops that need to scale, because it ...