Bloomberg Law featured the results of Katten's 2021 Private Credit Survey Report, which was conducted in February and surveyed 112 private credit industry professionals. The report showed how a large percentage of private equity investors and lenders in the private credit industry expect deal flow to increase in 2021.

Additionally, the report also revealed how private equity firms that purchase mid-sized businesses are eager to push for more borrower-friendly terms in the private credit market, as the worst of the COVID-19 pandemic subsides. In Katten's survey, half of private equity firms are expecting to be more aggressive in their conversations with non-bank lenders, as compared to the second half of 2020.

"With so many people flocking to the asset classes, looking to provide credit, there are only so many places to deploy capital. So, in many ways, it's simply an effect of supply and demand for credit, and the market will bear what the market will bear," Chicago Private Credit partner Derek Ladgenski said.

PE Firms Gear Up to Get Better Terms From Non-Bank Lenders.