The growth of private credit over the last decade has been remarkable. What used to be a niche corner of alternative finance has now become a major part of global capital markets. If we look at total assets under management, private credit now exceeds well over a trillion dollars in size, and that number keeps increasing.

In 2023 alone, the market reached roughly $1.6 trillion of assets. This growth hasn't been sporadic. It's been a steady year after year growth since the 2008 global financial crisis. One of the big reasons for this expansion is investor demand. Through the 2010s, large institutional investors were looking for reliable sources of yield in the low interest rate environment that prevailed during this time.

Private credit offered attractive returns compared to public debt markets, and this was responsible for drawing investors in.

Another driver is the increasing willingness of companies to borrow from non-bank lenders. These borrowers often appreciate the speed, flexibility, and confidentiality associated with private credit deals. Instead of going through the potentially cumbersome process of issuing a public bond or navigating banks' internally lending restrictions and requirements, with private credit, borrowers can work directly with private lenders to tailor solutions to their mutual benefit.

In short, private credit has moved from a specialist strategy to a core part of the private markets world.

Its growth reflects both investor interest and borrower demand.