Everybody’s talking about private credit. It’s making big headlines and unsettling some market participants — yet the overall quality of the asset class remains strong, and demand continues to grow. This creates significant opportunities for GPs who can win the confidence of LPs.
Fundraising reached record levels in the first 9 months of 2025 while the largest ever private credit deal – $27 billion – was announced by Blue Owl & Meta last month.
At the same time, high profile bankruptcies in the US auto space (First Brands, Tricolor Holdings) have put the spotlight on private credit quality.
Given the size of the asset class, notable failures have become inevitable – and so are the headlines that come with them. However, overall loss and default rates are not high and loan quality overall appears to be good.
Private credit has never been more important to the economy. Investment needs are very large, particularly in AI and the energy transition. Private credit is going to be a big part of that and likely to grow further from here.
For GPs, the opportunity remains huge – but successful fundraising can’t be built on momentum alone. LPs need to be reassured that your investment strategy and process are fit for purpose and your underwriting is robust. In this mature market, LP’s expectations have never been higher. Explaining why you’re the right partner for the next cycle is critical to the success of your next fundraise.
