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
Cliffwater, Blackstone cap redemptions from semi-liquid funds
Despite discussions of declining investor demand for liquidity, both funds saw requests for double-digit amounts of shares to be tendered
Non-listed BDC fundraising at lowest quarterly level in six years
Stanger report also sees highs in redemption requests: 10.4% of NAV in Q and 12.4% in Q2.
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.
Apollo’s Kleinman: Exits aren’t the problem, pricing is
Scott Kleinman, co-president of the firm, said at an industry event on Wednesday that the real obstacle is sellers being unwilling to accept the price the market is offering.
Why the UK regulator has its eyes on private credit
A recent note from the FCA highlighted both the rapid growth of the asset class and various areas of concern.
Loan Note: Santander makes key infra debt hires; smaller funds hit fundraising wall
In today's edition, Santander grows its infrastructure debt operation to help manage two new funds. Plus: smaller managers are finding fundraising a struggle; and we invite our readers to participate in our emerging manager survey. Here's today's brief for our valued subscribers only.
Why hybrid lending is gaining ground in the mid-market
Asset-based lending and term lending are coming together to meet challenges for a wide range of companies under pressure, argues Richard Gumbrecht.
Number of smaller funds dwindles
Analysis of fund close data found that vehicles valued at under $250m have seen a rapid decline since 2024.