Barings says direct lending needs to be assessed within broader private-credit toolkit

Traditional middle-market direct lending should be judged on its structure rather than on private-credit headlines, Barings argued in a viewpoint published on 3 June.

The most common form is senior secured, first-lien loans to established businesses.

The strategy is built around contractual income, lender protections and capital preservation, Barings said, with a buy-and-manage orientation in which manager discipline materially influences outcomes.