The global private credit market has passed $3tn in assets under management (AUM), solidifying its position as one of the fastest-growing sectors in alternative finance, according to new research by the Alternative Credit Council (ACC).
Corporate lending remains the dominant driver, representing 60% of the market’s AUM, with the remaining 40% split among asset-backed, real estate, and infrastructure debt, highlighting the sector’s diversification.
In 2023, private credit lenders deployed $333.4bn in fresh capital — a significant jump from the $203bn deployed in the previous year, with the largest private credit managers responsible for 80% of the total.
The ACC noted increased stress on borrowers over the past two years, prompting a rise in loan term adjustments. On average, 12% of loans required adjustments in 2024, up from 8% in 2023, as lenders actively managed their portfolios.
Private credit funds continue to use conservative leverage levels. Over half (51%) of funds employ leverage ratios between 0.1x and 1.5x debt-to-equity, while 31% remain unlevered, consistent with trends from the past decade.
According to the ACC, about half of investors plan to increase their private credit allocations in North America, Europe, and Asia over the next three years.
