The private debt market has experienced remarkable growth, with assets under management (AUM) increasing from $557 billion in 2014 to over $2 trillion in 2023, representing an annual growth rate of 14.4%. This growth has outpaced private equity and attracted significant interest from asset managers, exemplified by BlackRock’s $12 billion acquisition of HPS. However, concerns over market saturation and inexperienced players have arisen as managers surged from 801 in 2014 to 1,835 in 2024.

Since 2022, consolidation has emerged as a key trend, with the top 10 managers now capturing 31.9% of cumulative capital, up from a low of 26.6% in 2021. This shift has been driven by mergers and acquisitions, with 17 deals in the past two years, including major transactions like BlackRock-HPS and TPG-Angelo Gordon. These developments underscore the evolving structure of the private debt industry as it matures and concentrates.

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