Approximately $126 billion in private debt was raised globally in 2019, according to PitchBook Data's Global Private Debt Report. The private debt markets have experienced a surge in activity and volume following the Global Financial Crisis. Increased competition among lenders raise concerns about the increase in covenant-lite facilities as bargaining power shifts to issuers.

Direct lending accounted for approximately 57% of private debt raised in 2019, raising $72 billion. The report notes that there is a correlation between the growth in direct lending funds to the growth in private equity in the last few years, as direct lending funds tend to lend exclusively to financial sponsored-backed companies. Direct lending funds have an increased level of certainty of close, given a relaxed regulatory environment, the report notes.

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