Private credit is making significant moves into high-grade territory (as reported by Bloomberg this week), offering tailored financing solutions traditionally dominated by Investment Grade markets. The lines between these two markets are starting to blur and are affecting how credit teams approach capital allocation—especially as private lenders partner with insurers and focus on customized, long-dated investments.
Private credit’s appeal lies in its ability to provide bespoke financing solutions that traditional IG Credit markets cannot always accommodate. Deals like Apollo’s $11 billion investment for Intel’s semiconductor plant and Blackstone’s $3.5 billion pipeline transaction with EQT are just two examples of how private credit is stepping into what were once the sole domains of IG lending.
For buy-side teams, this convergence is leading to changes in practical hiring needs. Structuring and managing portfolios that balance private credit’s customization with the scalability of IG Credit requires expertise that spans both worlds. Credit teams with a strong foundation in (regulated) IG credit while straddling an understanding of private credit’s flexibility are much better positioned to identify opportunities and manage risks effectively.
Another key consideration when hiring talent is how this overlap affects liquidity and risk. High-grade private credit deals may offer attractive yields, but they lack the secondary market access of traditional IG bonds. Evaluating portfolio construction and capital allocation strategies over the long term is becoming an increasingly important skill for teams, with our clients increasingly moving away from traditional silos.
As private credit continues to expand into traditional IG markets, we are expecting a need for buy-side credit teams to adapt by building teams capable of operating across these two spaces. At Laz Partners, we predict an understanding of structured deals, risk-adjusted returns, and private credit’s bespoke nature to be invaluable for any A-player looking to stay ahead of the curve.
Are you a hiring manager thinking about how this will impact your hiring strategy and/or portfolio approach in 2025? Let's discuss—feel free to send me an email ([email protected]) or DM.
