The Growth of Private Credit

Private credit has emerged as a significant asset class, growing from under $250 billion before the global financial crisis to approximately $1.2 trillion today. This rapid expansion is notable in comparison to high-yield bonds and leveraged loans, which have only doubled in the same timeframe. Projections suggest that the US private debt market could nearly double again in the next five years, indicating continued robust growth. The potential for capital doubling reflects strong demand amidst evolving market dynamics and solidifies private credit's position within the broader financial landscape.