US banks have emerged as a major driver of private credit growth, providing around $300bn in loans to private credit funds as of June 2025, according to a report by Bloomberg citing research by Moody’s Ratings.
Lending to all non-depository financial institutions – including hedge funds, private equity firms, and pension funds – has surged to $1.2tn, highlighting the increasing role of banks in alternative credit markets.
Wells Fargo leads bank lending to private credit providers, with roughly $60bn in “business credit” exposure, encompassing direct lending funds, business development companies, and securitised products like collateralised loan obligations (CLOs). JPMorgan Chase tops lending to private equity sponsors, with $47bn in credit facilities extended to fund managers.
Banks are increasingly channeling finance to private credit providers rather than lending directly to high-yield or unrated borrowers, viewing the arrangement as a safer way to capture the asset class’s growth while avoiding direct risk. Moody’s notes that lending to non-bank institutions has become one of the fastest-growing segments, now representing over 10% of total US bank loans.
