The $1.7tn private lending industry is just beginning its expansion, and has the potential to grow to a $25tn market globally, according to Michael Zawadzki, Blackstone Credit and Insurance’s global chief investment officer.
In an interview with Bloomberg Television, Zawadzki highlighted the growing demand for financing data centres and energy transition projects as key drivers of this potential growth.
“You’re financing the real economy — you’re not waiting for M&A transactions to happen,” Zawadzki said. “You’re financing consumers, you’re financing data centres, you’re financing energy transition. Huge growth capital expenditures, that’s what’s really driving the growth.”
Blackstone has been a significant player in the asset-based finance markets, notably leading debt packages for cloud computing company CoreWeave Inc, secured by assets like microchips. Additionally, Blackstone has increased its involvement in credit card debt by collaborating with banks such as Barclays Plc.
With spreads in public markets having become “awfully tight” due to increased investor interest, Blackstone is steering clients towards private credit, which offers higher excess spread and an illiquidity premium.
“The market is poised for significant growth,” Zawadzki said.
