Private credit has outgrown its spreadsheets
Private credit severely lacks operating leverage, writes Daniel Hellwig, but standardizing how terms are recorded and applying AI could inch it toward maturity.
Private credit grew by filling gaps in bank lending, offering borrowers speed, certainty, and terms tailored to each deal. Supporting each deal, however, still requires substantial work from skilled staff, and errors in tracking loan terms can lead to net asset value (NAV) restatements or cash released on conditions that were no longer met.
If private credit is to keep growing without adding middle-office staff with every deal, it will have to apply a lesson from banking: standardize the
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