In this memorandum, we discuss how asset managers contribute to the financing of the real economy, with a particular focus on private credit. We describe the growth and functioning of private credit as a financing instrument, the risks and how the European regulatory framework - the AIFMD and the ELTIF framework - structurally addresses them, and the specific opportunities and bottlenecks for the Netherlands in light of the pension transition and the European investment agenda.
Our central message: private credit is not a fringe phenomenon, but an important and necessary addition to existing financing channels. The European framework provides a robust foundation for this, and the Netherlands is in a position to actively benefit from it provided the national framework supports this growth.
