The exponential growth of private fund managers into direct lending and large managers exerting control of the insurance market, would likely be areas ripe for regulatory scrutiny by the incoming Biden SEC. According to FrontLine’s Founder and President, Amy Lynch, the dramatic growth of the direct lending market has received little regulatory attention, despite the scale and scope of activity by private funds stepping in to lend to commercial borrowers. Ms. Lynch describes a growing concern of this trend among certain policymakers for inadequate regulatory oversight of the potential risks. She further comments that large money managers push into the insurance company market – and control of their investment portfolios, which represent large components of the economy, could again raise the systemic risk question. See FundFire (subscription required), “Will Regulators Rein in Managers on Direct Lending, Insurance?”
