- Entity formation
- Entity management
- M&A transaction support
- Private capital & hedge fund core services
- Private capital
- Hedge fund
- Technology solutions
- Other funds services
- SPV corporate services
- Agency services
- Loan administration
- Cross capital market services
- Structures implementation and management
- Private client services
- Reporting services
Explore content
Show all >Featured articles and media

Insights | Corporate Client Services
Voluntary carbon credits bolster green bonds
25 May 2023
Read >
Featured articles and media
Show all media for Private Capital & Hedge Fund Services >Featured articles and media
Show all media for Capital Markets >Featured articles and media
Show all media for Private Clients >Featured events

Events | Virtual
Bankruptcy and Restructuring: Navigating Distress in the Evolving Markets
22 Jun 2023
Learn more >
Events | Virtual
Private Funds Industry Live, Expanding Private Funds in Global Markets
10 Jan 2023
Watch the recording >
Events | Virtual
Private Funds Industry Live, Demystifying Private Capital Funds
6 Dec 2022
Watch the recording >- Home
- Our services
- Corporate Client Services
- Entity formation
- Entity management
- M&A transaction support
- Private Capital & Hedge Fund Services
- Private capital & hedge fund core services
- Private capital
- Hedge fund
- Technology solutions
- Other funds services
- Capital Markets
- SPV corporate services
- Agency services
- Loan administration
- Cross capital market services
- Private Clients
- Structures implementation and management
- Private client services
- Reporting services
- Corporate Client Services
- Our locations
- About us
- News & Insights
- Login
Resurgence in traditional bank lending a key challenge facing private debt funds
21 March 2018
- 24% of professional investors see the traditional banks as biggest challenge facing private debt funds
- 64% cite banks’ balance sheet strength as their biggest asset
A resurgence in traditional bank lending is the biggest challenge facing the direct lending market in the coming years, according to one in four (24%) professional investors.
A study commissioned by Intertrust, a leading global provider of high-value trust, corporate and fund services reveals that despite the rapid rise of private debt funds, professional investors believe that traditional banks will continue to be a dominant force in lending.
Balance sheet strength and competitive borrowing rates were cited as the biggest long-term advantages held by traditional banks over private debt managers, according to 64% and 62% of professional investors respectively.
Other key advantages held by the banks over private debt funds were monitoring resources (55%), loan origination infrastructure (48%), experienced teams (42%) and an ability to adapt to changes in the debt cycle (37%).
Regulation, fee pressure and fund raising were identified as the three biggest challenges facing the direct lending market, by 61%, 48% and 30% of investors respectively.
Paul Lawrence, Global Head of Fund Services at Intertrust says:
“Private debt funds may be booming but outside the US, the demise of traditional banks in company lending has been greatly exaggerated. In some markets such as Europe banks still occupy a dominant position and with further rate rises expected it’s likely that more banks will decide to put their large balance sheets to work and offer relatively competitive terms.”
“Many borrowers will be looking to refinance leveraged loans and high yield bonds as they reach maturity over the next few years. This creates a strong opportunity for the banks, particularly if they were to supplement their traditional balance sheet lending by creating fund structures that could enable them to compete more directly with the private debt players.”
Latest
Weekly insights
direct to your inbox
Subscribe to receive the latest news and insights, personalised to your role, location and areas of interest.