Alternative credit is not a new phenomenon; however, up until the 2008 global financial crisis (GFC), it was largely overlooked by investors, reserved primarily for real estate debt, collateralized loan obligations and investment-grade private credit. The crash was a catalyst for the market. Banks froze traditional lending options and limited those capabilities due to tighter regulations shortly after. Borrowers had to look elsewhere for financing, opening up the world of alternative credit.

The GFC was the spark allowing for innovation

Alternative credit is made up of asset classes that provide financing options outside of traditional fixed-income markets. Investors were drawn to these investments following 2008, as public markets faced challenges — initially from extreme volatility during the crisis, and then challenges in providing adequate income in the ensuing ultra-low interest-rate environment.

While the GFC was the spark, what has car