Private Equity Firms Now Have Huge Lending Arms That Rival Banks
Since the financial crisis large private equity firms like Blackstone, Apollo and KKR have created huge lending arms. These firms and many like them are pivoting from private equity to private debt as banks have pulled back from doing more risky lending deals. Some argue that this is a positive for the financial system as private equity firms are less levered than banks and therefore do not provide a systemic risk in the event of another financial crisis. Source.