Private credit funds have extended nearly $560bn in new loans to US businesses over the past three years, supporting more than 6.5 million jobs, according to a report by Reuter citing new research by the Managed Funds Association.
The research highlights the growing role of alternative asset managers in corporate financing, as private credit has expanded rapidly over the past decade amid increased investor allocations to private markets.
It also points to a broader shift in lending dynamics, with traditional banks pulling back from higher-risk corporate lending due to tighter regulatory requirements, creating space for private credit firms to step in.
According to the MFA, total lending activity since 2023 has contributed roughly $897bn in US economic output, with California, Texas, and Illinois accounting for the largest share of activity.
MFA chief executive Bryan Corbett said alternative asset managers are making a “meaningful contribution” to the US economy and called for regulatory frameworks that continue to support the industry’s expansion.
The report also notes rising institutional allocations to hedge funds, which have grown to about $1.6tn, driven largely by pension funds, endowments, and foundations seeking diversification and long-term returns.
Pension funds remain the largest allocators, followed by non-profit foundations, with New York, California, and Texas representing the biggest hubs for hedge fund exposure.
The findings are based on analysis of private credit and hedge fund data from BlackRock’s Preqin platform and federal datasets.
