Why companies are going for private debt in capital hunt

Companies seeking capital are increasingly opting for private debt from non-bank investment vehicles due to more flexible lending terms. In 2025, private debt transactions in Africa rose by 57% to 72 deals, while private equity and venture capital investments grew only by 2%. David Owino from Ascent Capital Advisors noted that the inflexibility of bank loans encourages businesses to turn to private lenders who provide tailored solutions during crises.