"There's a need for private credit to facilitate the infrastructure build for AI, whether it's chips or data centre developments," Mark Van Zandt, managing director and co-head of real estate at King Street Capital Management, said in an interview.
The artificial intelligence boom is driving business to private credit firms, as tech companies seek funding to build data centres filled with computing chips to operate AI models.
Carlyle Group Inc. expects more than US$1.8 trillion ($2.35 trillion) of capital will be deployed by 2030 to meet that demand, and a chunk of that can be taken up by the private markets, Chief Executive Officer Harvey Schwartz recently wrote in a shareholder letter.
