Marianna Fassinotti

Banks Stepping Out, Private Credit Stepping In | Milken Institute Global Conference 2024

John Bowman, Jeffrey Aronson, Marianna Fassinotti, Gregory Geiling, Peter Gleysteen, Drew McKnight

The private credit market has evolved from a niche financing tool into a $2.2 trillion "big tent" asset class, driven primarily by regulatory pressures like the Basel Endgame that force banks to offload capital requirements while retaining origination roles. This structural shift has fostered a complementary partnership model where global banks leverage private capital for risk transfer and flexibility, resulting in robust credit quality despite a temporary pause in corporate activity due to high interest rates. As the industry navigates the next economic cycle, focus is shifting toward downside protection, specialized asset management, and the emerging secondary market to address the sector's lack of full stress testing since the Global Financial Crisis.