A dearth of capital markets and M&A work, stringent investment processes and big valuation gaps relentlessly tested law firms’ corporate strategies throughout 2023, and lawyers expect the opportunity to increase. Private Investment Funds partner John Anderson highlighted that the “changing economic and regulatory environment” has led to an “increase in private firms providing these loans”. “It is a creative solution to fundraise that minimizes the bust and boom cycle, which is what investors now want. Within the private fund space, rather than just focusing on private equity, investors are now also realizing that exposure to direct lending and other debt strategies adds diversification to their portfolio”, he added to Law.com. “All of our practitioners work across a broad range of asset classes, but bringing in somebody specializing in the credit area allows us to complement the existing practice”, said Michael Halford, co-chair of Private Investment Funds.