With US national debt now above $40tn and interest costs eating up a larger slice of tax revenues than defense, the cost of money is back in the spotlight. That shift affects everything from mortgages to how private lenders price risk. For investors, this can reset who holds the power in credit markets. This article walks through three stocks exposed to this story and explains why they may matter for your watchlist.

The stocks below are just a starting sample, and the full screen on Simply Wall St surfaced 23 more companies with equally compelling private credit and non bank lending narratives that are not covered here. If you want to go straight to the source and identify your own highest conviction plays, head into the Global Alternative Credit and Private Lenders screener.

Bridgepoint Group (LSE:BPT)

Overview: Bridgepoint Group is a London based asset manager focused on private equity, infrastructure and private credit, with a particular emphasis on middle market direct lending and credit opportunities that fit the non bank lending theme. It raises capital from investors and then finances businesses across sectors such as energy transition, healthcare, industrials and digital services across the UK, Europe and North America.

Operations: Bridgepoint generates most of its revenue from Infrastructure at £303.9 million and Private Equity at £287.7 million, with Credit contributing £88.2 million, and its activity is concentrated across the United Kingdom at £328 million and the USA at £306.5 million.

Market Cap: £2.8 billion

Bridgepoint Group gives you direct exposure to private credit and non bank lending at a time when higher borrowing costs are encouraging more borrowers to look beyond traditional banks. The group combines a sizeable credit arm with large infrastructure and private equity platforms, and recent fund structures and partnerships are aimed at expanding recurring fee income across different investor types. At the same time, earnings have been choppy, margins are currently thin and the company relies on external funding rather than deposits, which can matter if credit conditions tighten further. In addition, there has been active equity raising and share issuance, so funding costs, dilution and execution on new strategies deserve close attention.

Bridgepoint Group’s credit platform is expanding alongside its infrastructure and private equity arms, yet thin margins and external funding costs raise important questions. Get the full picture in the 2 key rewards and 4 important warning signs (1 is major!)

Build your own private credit shortlist

Bridgepoint Group and the two other stocks in this article surfaced from a single Simply Wall St screener, but the real edge comes from shaping your own filters. Use our customisable Screener to combine valuation, growth, balance sheet and risk metrics to match your style, or start with any of our curated Investing Ideas.

Ares Management (ARES)

Overview: Ares Management is a large global alternative asset manager whose core strength is private credit and direct lending, providing tailored financing to mid sized companies worldwide alongside sizeable private equity, real assets and secondaries businesses that all link back to the broader non bank lending theme.

Operations: Ares generates most of its revenue from its Credit Group at about US$3.6b, with additional contributions from the Real Assets Group at roughly US$1.1b, the Secondaries Group at about US$384 million and the Private Equity Group at around US$193 million, alongside smaller unallocated items.

Market Cap: US$47.3b

Higher for longer interest rates are pushing more borrowers toward non bank lenders, and Ares Management is one of the largest global platforms positioned to provide that private credit, with record fundraising, a sizeable direct lending pipeline and growing exposure across real assets and secondaries. At the same time, the business leans heavily on external funding rather than deposits, has dividends that are not well covered by earnings or free cash flow and has relied on large one off gains that can make underlying cash generation harder to read. For investors who want exposure to the private credit story in a world of expensive government debt, those strengths and pressure points make Ares a stock to understand in more detail before deciding where it fits in a portfolio.

Ares Management appears to be a powerhouse in private credit, yet its complex mix of external funding, dividends and one off gains leaves key questions open. Get the full story in the analysis report for Ares Management

Patria Investments (PAX)

Overview: Patria Investments is a private markets asset manager that raises capital for private equity, infrastructure, real estate and credit funds, giving investors exposure to private credit and non bank lending across Latin America and beyond. It targets middle market companies in sectors such as agribusiness, energy, healthcare and digital services, often taking controlling or influential minority stakes and co investing alongside other institutions.

Operations: Patria generates its revenue primarily from its Asset Management segment at about US$428 million.

Market Cap: US$1.8 billion

Patria Investments offers a way to tap into the growth of private credit in Latin America at a time when higher global borrowing costs are pushing more corporates toward alternative lenders. Recent quarters show strong fundraising, fee earning AUM expansion and support from large clients such as sovereign wealth funds. However, profit margins have come under pressure, and a high dividend payout ratio raises questions about how resilient that income stream is through a tougher credit cycle. In addition, regional political and economic risk plus an active acquisition program create a mix of attractive private market exposure and execution considerations that may warrant deeper analysis.

Patria Investments is accelerating its private credit reach with strong fundraising and fee earning AUM, yet high payout ratios and regional risks could be masking a crucial twist in the 2 key rewards and 2 important warning signs

Seeking Alternatives Before Others Catch On

Fresh stock ideas can move from quiet accumulation to breakout momentum fast. Use these curated shortlists while they are still under the radar for now and get in early.

• Spot companies quietly building strength and tap into a curated list of solid balance sheet and fundamentals (19 results) before the crowd starts chasing their momentum.
• Explore miners with improving operations by scanning the hand picked 31 elite gold producer stocks while sentiment is still catching up.
• Target niche growth stories in robotics and automation by reviewing the focused 38 robotics and automation stocks before valuations start rising.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.