"As new bank formation remains stagnant, private credit is an indispensable cornerstone of financing, ensuring businesses and projects that drive growth are not left behind. The question isn’t whether private credit will continue to grow—it’s how far it will go." -- Peachtree CEO Greg Friedman #privatecredit
The Financial Crisis Changed Everything—It Opened the Door for Private Credit, and Today’s Disruption Fuels Its Growth The GFC didn’t just shake the global economy; it fundamentally reshaped the U.S. banking landscape. Between 2007 and 2013, more than 800 independent commercial banks disappeared. Community banks, the lifeblood of small business lending and local economies, bore the brunt of this decline. What’s even more striking? New bank formation essentially stopped. From 1990 to 2007, about 100 new banks opened annually. Since 2010, that number has plummeted to an average of three per year. This has had a profound impact—not just on the banking sector but on the flow of credit in the economy. With fewer community banks and limited competition from new entrants, borrowers have fewer options. Enter private credit. When Peachtree Group launched its private credit platform in 2013, the private credit market was a fraction of where it is today—a niche, barely measurable part of the financial world. Today, it’s a $1.7 trillion behemoth. This incredible growth has been fueled by the ability of private credit lenders to step up and fill the void left by traditional banks, providing tailored financing solutions for middle-market borrowers, commercial real estate projects and other underserved sectors. But private credit’s role has become even more pronounced in today’s banking dislocation. Higher for longer interest rates, tighter credit standards and significant pullbacks from traditional lenders have left businesses searching for alternatives. This environment underscores the flexibility and innovation that private credit brings to the table. As traditional banks focus on preserving liquidity and managing risk, private credit is stepping in to provide the capital businesses need to thrive. Private credit offers agility, innovation and speed. This shift is more than just a trend—it’s a structural evolution in how capital flows through the economy. As new bank formation remains stagnant, private credit is an indispensable cornerstone of financing, ensuring businesses and projects that drive growth are not left behind. The question isn’t whether private credit will continue to grow—it’s how far it will go. Peachtree Group Peachtree Group Credit Daniel Siegel Michael Harper Jared Schlosser Michael Ritz Jatin Desai Brent LeBlanc Brian Waldman #commercialrealestate #banks #banking #lending #privatecredit
