Retail investment is a major trend, as individual investors try to figure out the best ways to access the asset class
It is estimated that retail investment currently accounts for around 15 percent of total private credit assets under management in the $3 trillion asset class. While this sounds relatively modest, investment from this source is expected to skyrocket as high-net-worth individuals are increasingly attracted by private credit’s long track record of good performance, and delivery of steady income.
Indeed, there are some who predict that retail investment in private credit will eventually be as large as institutional investment. This is despite the fact that marketing to retail investors is always under close scrutiny from regulators. Communicating with investors in the right way, and making sure they are investing through appropriate vehicles, are imperative for managers seeking to tap into this source of capital.
BDC controversy
In the US – the largest market in the world for retail investment in private credit – much of this type of capital has been invested into semi-liquid vehicles such as business development companies (BDCs) and interval funds. In light of some negative press headlines, many investors have sought to exit these vehicles all at once – creating a so-called “redemption rush”.
This has led to questions around whether retail investors have sufficient understanding of the asset class in general and also around the amount of liquidity the vehicles they are investing into are able to offer.
In our coverage we have stayed on top of all the key developments relating to retail investment, and on this page you can keep yourself up to date with that coverage on an ongoing basis. It is a topic that will continue making the headlines in the years ahead.
RETAIL INVESTMENT INSIGHTS
SEC zeroes in on private funds valuations
Examiners ask about funds by name in opening requests. Enforcement has picked up the scent, too, Private Funds CFO has learned.
T Rowe Price, Goldman Sachs unveil private markets interval fund
The multi-strategy fund is the latest offering of the duo’s strategic collaboration announced in September 2025
Wellington to manage semi-liquid funds holding Blackstone, Vanguard investments
Geared to private wealth clients, the end funds will combine public and private assets and have limited distribution at first.
BDC redemption requests in Q2: more of the same, if not worse
The trend among retail investors that started in Q1 accelerates, on average, and involves many of the same large fund managers.
Apollo caps redemptions from flagship non-listed BDC
Apollo Debt Solutions saw gross outflows of $400m for the second quarter of 2026.
Moodys shifts outlook of Blackstone, Golub public BDCs to negative
Both BDCs will retain their investment-grade ratings despite the pessimistic near-term outlook.
DoubleLine CEO Gundlach likens private credit to ‘Wild West’, warns of eroding trust
Investing and banking sector leads debate the extent to which private credit’s problems could spiral at the Milken Institute Global Conference 2026.
European lenders prepare for influx of retail investment
European managers say that changes to fund structures are only the beginning of the continent’s retailisation trend.
Blackstone’s Gray: Negative news doesn’t invalidate semi-liquid structure
The firm’s chief operating officer told a Moody’s conference, however, that ‘if you need the money to live on, it’s not appropriate’.
Stress in private credit funds is stalling efforts to widen retail access
Runs draw down political capital, as examiners step up focus on disclosures, possible conflicts and valuation of funds.
The virtuous circle: energy and digital infrastructure
Houlihan Lokey’s paper offers the theory as Nvidia strikes deals with investment managers that illustrate the practice of AI infra buildout to the tune of $500bn.
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The problem of duelling credit default tallies
Whether the trend is up or down – and by how much - depends on who’s counting and with what data.
US investors sharpen monitoring of private credit managers
During a PEI Group webinar, private debt LPs outline how they are responding to market volatility and growing dispersion of manager performance, with some increasingly wary of the sponsored direct lending space.
Churchill launches capital solutions strategy: Noah Charney to lead
Manager anticipates an exclusively PE-sponsored, mid-market portfolio of high-quality companies that need some extra support.