A recent Handelsblatt article examines developments in the private credit market, focusing on both the opportunities it offers, and the structural risks associated with this form of financing. Deutsche Credit and the perspective of its founder and Managing Director, Dr Nicolaus Loos, feature prominently in the article.

In the interview, Dr Nicolaus Loos assesses the current debate around private credit and private equity, as well as their growing interconnectedness with the traditional financial system. He describes the increasing complexity of modern financing structures as a “new dimension of financial engineering”, while also highlighting where these developments can create attractive opportunities for investors.

Deutsche Credit sees particularly strong long-term potential in Germany’s mid-market. Private credit structures can help address financing gaps that traditional banks are increasingly unable to fill, whether because of regulatory requirements or the longer maturities involved.

At the same time, Dr Loos stresses the importance of rigorous structuring and transparent analysis in identifying and managing potential conflicts of interest and preventing risks from being shifted between different parts of complex financing structures.