Private debt has grown to become a major part of the financial infrastructure in the U.S. and Europe since the 2008 financial crisis, as banks reduced lending to smaller companies.
It is different from other forms of lending because it is done directly from a specialist fund manager to all sorts of companies—dentists, restaurants, insurance brokers and software makers, among others—without going through either a bank or bond markets.Also Read | Inside the farmer disquiet at Delhi’s doorstepMany companies have faced hard times during lockdowns, but the unprecedented support from governments and central banks across economies in the U.S.