Home Private Credit Why Banks And Private Equity Firms Are Both Competing And Collaborating In Private Credit? Why are banks both increasingly cooperating and competing with PE firms in providing private credit? As banks have pulled back from lending to less creditworthy companies in recent decades, a trend that accelerated after the 2008 financial crisis, they have seen private equity firms step in through closed-end funds and other vehicles dedicated to financing corporate credits, usually for middle-market firms and often those in their equity portfolios. Yet rather than sit passively...