New industry research from the Alternative Credit Council (ACC), the private credit affiliate of the Alternative Investment Management Association (AIMA), finds that the global private credit market has reached US$3.5 trillion assets under management (AUM).

Financing the Economy 2025, published in partnership with Houlihan Lokey, reveals that private credit has continued to expand at a pace, and there remains scope for further growth:

• Private credit capital deployment grew to US$592.8 billion in 2024, up 78% on 2023 deployment volumes.  
• The sector also continued to diversify, with corporate, asset-backed, real estate, and infrastructure lending all contributing to its expanded activity in 2024.
• The asset class also continues to mature across all major regions, with particularly strong growth dynamics in Europe, which now accounts for close to 30% of global private credit assets under management.
• The investor base for private credit remains predominantly institutional, accounting for 76% of private credit AUM. The share of private credit assets held by retail and mass-affluent investors (24%) is expected to grow in the coming years.

The report also finds that key features of the private credit market remain stable through its ongoing period of growth:

• Fund-level leverage remains modest and stable. Respondents collectively report US$398bn of borrowing, equal to ~32% of their net AUM, levels that are broadly unchanged over the past decade.
• 80% of private credit assets are in closed-ended structures, with the reset in semi-liquid structures that make extensive use of liquidity management tools to prevent asset-liability mismatches.
• Key credit metrics indicate that stress in private credit portfolios remains comparatively elevated following sharp interest rate rises in 2022. However, it is still within expected bounds. Non-accrual rates for corporate lending remain at 1.8% on a weighted-average basis, consistent with historical experience for similar credit-quality portfolios

Jiří Król, Global Head of the Alternative Credit Council, said: “Our data shows another year of strong growth and diversification for the sector, underlining its importance as a financing option for borrowers and as a critical part of investor portfolios. Non-performing loan levels have risen in the last couple of years but appear to have stabilised around historical averages. Leverage is modest, and fund structures continue to be designed for resilience. Private credit is growing for the right reasons”.

Cindy Ma, Managing Director, Global Head of Portfolio Valuation & Fund Advisory, said: “This year’s report highlights the sustained growth in private credit, and from our perspective as a valuation leader, the reason is clear: investor demand remains robust. While we’ve observed some spread compression, the returns in private credit are still very attractive compared to more liquid alternatives. This enduring premium is why we are seeing a broader range of investors, from large institutions to family offices, continue to build their allocations in this space.”

The report, produced in partnership with Houlihan Lokey, draws on survey data from 49 private credit managers managing US$2.1 trillion in assets. The research also features contributions from 13 leading private credit fund managers, including Allianz Global Investors, Apollo Global Management, Ares, BlackRock, Blackstone Credit, Blue Owl Capital, The Carlyle Group, Cheyne Capital, CVC Credit Partners, ICG, MGG Investment Group, MV Credit and Orchard Global.

Source: ACC