Private credit is set to expand its footprint in emerging markets amid rising demand for investment solutions, Victory Park Capital (VPC) has predicted.
In a note to investors, VPC’s chief executive Richard Levy and chief investment officer Brendan Carroll highlighted emerging markets as a key growth area for private credit, where demographic trends and a growing need for capital create unique opportunities for investment.
“As companies in these regions seek alternative financing sources to fuel growth, private credit will be well-positioned to meet the demand, particularly through asset-backed lending strategies,” Levy and Carroll added.
In the year ahead, Levy and Carroll expect to see continued demand for bespoke investment solutions, as investors seek out tailored investment offerings that meet their specific needs, rather than relying solely on traditional fund commitments.
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They have also predicted that technology will play a more significant role in the private credit sector.
“VPC has increasingly leveraged AI-driven tools to enhance efficiency across its investment processes, from portfolio analytics to risk assessment and deal sourcing,” they added.
“By integrating these technologies, we have improved decision-making speed and accuracy, allowing us to identify and execute opportunities with greater precision.”
Following a busy 2024, Levy and Carroll told investors that the firm is entering 2025 with an “exceptionally strong” investment pipeline, reflecting the growing demand for alternative financing solutions. VPC intends to continue to scale, with new hires and new product launches, following the completion of the company’s acquisition by Janus Henderson.
Read more: Janus Henderson buys majority stake in Victory Park Capital
“We are excited to partner with Janus Henderson in VPC’s next phase of growth,” said Levy.
“This partnership is a testament to the strength of our established brand in private credit and differentiated expertise, and we believe it will enable us to scale faster, diversify our product offering, expand our distribution and geographic reach, and bolster our proprietary origination channels.”
Earlier today (13 February), the company announced the appointment of Hugo Lestiboudois as principal, to advance the firm’s legal credit strategy.
“We welcome Hugo to the firm with great excitement,” said Levy.
“I am confident that his experience will help us unlock further momentum in the rapidly expanding market for legal investing and address the growing demand for innovative funding solutions.”
Read more: VPC reports resilience in asset-backed lending portfolio
