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Laxman Pai, Opalesque Asia: Private credit is fast becoming the asset class of choice for institutional investors, with more than four-fifths (82%) of global limited partners (LPs) planning to increase allocations over the next three years, according to new research from CSC.
Of those, 42% expect "significant" growth in exposure, highlighting the sector's momentum despite wider market uncertainty.
The study, which canvassed 300 general partners (GPs) and 200 LPs across Europe, North America, and Asia Pacific, found portfolio diversification (76%) to be the primary driver of allocations, followed by attractive returns (36%).
"Private credit has exploded into the mainstream, becoming a truly global, multijurisdictional phenomenon that looks set to attract more and more investor capital," said Marshall Saffer, managing director, Funds and Capital Markets at CSC.
GP sentiment appears equally bullish. Nearly 60% of surveyed managers expect assets under management in private credit to rise by 6-10% over the next three years, while almost a third (31%) predict growth exceeding 10%.
Senior debt and asset-backed finance are emerging as the most attractive strategies, while distressed debt sits at the bottom of growth expectations. Cross-border lending is poised for expansion, with 79% of GPs anticipating a significant rise in international activity.
But growth comes with challenges. The report, Private Credit 2025: Scaling Global Strategies Through Operatio...................... To view our full article Click here
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