The global private credit market has reached a record $3 trillion in assets under management (AuM), according to a report by the Alternative Credit Council (ACC), the private credit affiliate of the Alternative Investment Management Association, and consulting firm EY.
Corporate lending dominated the private credit landscape, representing around 60% of total AuM. The research also found that investors are increasingly diversifying into asset-backed lending, real estate debt, and infrastructure debt strategies, which now account for the remaining 40%.
The research drew on data from 53 private credit managers and investors who collectively manage an estimated $2 trillion in private credit assets.
The report highlighted a surge in capital deployment, with private credit lenders investing $333.4 billion in 2023 from $203 billion in 2022. The largest managers were responsible for 80% of the capital deployed, showcasing the influence of major players in driving the sector’s growth and role in global finance despite broader economic challenges.
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Loan term adjustments have also risen, reflecting the stress on borrowers over the past two years. Adjustments rose from 8% of loans in 2023 to nearly 12% in 2024, remaining within forecast scenarios and demonstrating the sector’s proactive risk management. Investors are benefitting from high levels of transparency regarding the status and performance of loan portfolios.
Leverage levels within private credit funds have remained stable over the past decade, according to the report, with 51% of funds employing leverage ratios of 0.1x to 1.5x debt-to-equity, and 31% remaining unlevered. This stability highlighted the sector’s conservative approach to risk, according to ACC data.
Around half of respondents anticipate increasing their investments across the US, Europe, and Asia over the next three years, driven by investor demand for diversification and reduced bank lending activity.
“Surpassing $3 trillion in assets is a remarkable achievement for the private credit industry, especially in a challenging macro environment,” said Jiří Król, global head, ACC. “Private credit’s stability stems from its strong structural foundations—aligned interests between managers and investors and robust long-term capital backing. This makes private credit a resilient force in today’s financial landscape.”
Vincent Remy, EY Luxembourg private debt leader, added: “Private credit has been the fastest-growing alternative asset class over the past two decades. Despite headwinds, the sector continues its steady growth, expanding into new geographical markets and debt strategies. While institutional money remains the primary funding source, retail and insurance capital are playing an increasingly significant role.”
