Ocorian: Regulators are expected to toughen up on private credit
Private credit executives are expecting regulators to take a tighter grip on the market and warn that private credit fund managers are not as well-equipped to cope as they should be, new research from Nordic Trustee, part of global capital markets services provider Ocorian, shows.
Around 79% questioned expect increased regulation in the private credit market in the next 12 to 18 months with 15% predicting a significant increase.
The research with private credit executives across the UK & Ireland, Germany, Switzerland, Benelux, the Nordics and Eastern Europe found just one in three (33%) say private credit fund managers are very well-equipped to meet regulations in their jurisdiction.
Around 65% say private credit fund managers are quite well-equipped to meet regulatory standards. Just 2% worry they are not very well-equipped, the study with professionals working across private credit and debt fund management, investing in private debt, private equity and corporates that use private credit as a source of funding, and at debt advisory firms shows.
The survey with private credit executives found they do not rate current private credit regulation in their jurisdiction highly. Just 37% say it is fit for purpose while 56% say it needs improvement involving changes or less regulation. Around 7% say there is not enough regulation in their jurisdiction.