Private credit managers are increasingly refining fund structures to meet growing investor appetite for liquidity, co-investment, and bespoke solutions, according to new research from the Alternative Credit Council (ACC) and law firm Dechert.
The report, Trends in Private Credit Fund Structuring 2025, draws on data from 50 private credit managers overseeing roughly $1.5tn in assets, alongside interviews with industry leaders. It highlights how fund design is evolving to accommodate institutional, retail, and insurance investors as the market matures.
Key findings show that demand for co-investment has surged, with 92% of managers reporting higher investor interest, up from around 70% in 2023. Liquidity needs are also rising: 64% of managers cited stronger demand, with two-thirds now offering at least one vehicle with periodic redemption, compared with half in 2023. Leverage use remains modest, typically 1.0-1.5 times NAV, and targeted at specific assets or funds.
Retail participation is growing, with more than half of managers serving high-net-worth or other retail clients, and two-thirds actively targeting retail capital for new funds. Insurance allocations are increasingly facilitated via rated note feeders, with 63% of managers considering them for US insurers and 35% for European and Asian insurers.
Trusted domiciles remain Luxembourg, Cayman, the US, and Ireland, with many managers running parallel vehicles to meet investor preferences. The report also notes fee innovation, with around two-thirds of managers adopting tiered management fee schedules and other flexible models to maintain fundraising competitiveness.
Jiří Król, Global Head of the ACC, said: “Our new research shows the importance of structuring for investors in private credit – adding value while also allowing investors to tailor their exposure and manage risks. Investor demand for liquidity and co-investment is being met by private credit managers who take the same long-term outlook to their product design as they do to their investments.”
Claire Bentley, Partner at Dechert, added: “Effective fund structuring is at the heart of private credit’s evolution. Managers who can offer enhanced liquidity, including evergreen vehicles, alongside customised products, flexible fee models and co-investment opportunities are positioning themselves to meet the nuanced demands of institutions, insurers and high-net-worth clients. Our research shows that those who master these tools can expand their investor base without sacrificing the reliable returns that define the asset class.”
