The private credit market is predicted to grow to $1tn by 2020, with hedge fund and private equity houses lending to UK and European small and medium enterprises at record levels.

Private credit funds managed around $600bn globally at the end of 2016, according to data provider Preqin. A report from trade bodies the Alternative Credit Council and the Alternative Investment Management Association, and law firm Dechert, predicted that number would almost double in the next three years.