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Private debt would have to be close to bank rates dor similar loan amount to be competitive. The main advantage I think of private debt is more flexibility with terms. Maybe not pulling of someone credit. What type of private debt are you referring to?
If a company is already bankable then PD won't be competitive. PD is in place bc the company can't get a bank to underwrite or their terms/covenants are too arduous
Another thing to consider is how the margin pressures and inability to increase prices for some companies might lead to debt spiral.
As far as I know private debt targets smaller and/or riskier clients. And the difference is that PD can take more risk and when competing with banks even show lower rates since it essentially has no funding and regulatory issues compared to banks
I am referring to PD in general including both direct lending and mezzanine