The latest trends across private credit markets in North America
North America accounted for 56 percent of all fundraising in the first half of 2026, according to PEI Group data, with $121.4 billion earmarked for deployment on the continent over the coming years. Investor appetite for the US market clearly remains strong despite an uncertain geopolitical environment and a sharp uptick in redemption requests by retail investors. In this special report, we explore the ways in which the world’s most mature private credit market is set to develop, studying its growing appeal to institutional investors, as well as the potential challenges on the horizon.
KEY TRENDS
Three key trends for US private credit in 2026
The US private credit market puts in a strong performance despite market headwinds.
FEATURES & THOUGHT LEADERSHIP
Why private credit’s redemptions saga isn’t worrying LPs
Retail money may be fleeing BDCs right now, but that doesn’t mean private credit’s dalliance with retail money is over, writes David Brooke.
Churchill Asset Management on why consistency is key
Scaled lenders backed by institutional capital are positioned to succeed in the next cycle as sponsors prioritise certainty of execution, say Churchill Asset Management’s Derek Fricke and Jill White.
What follows the ‘SaaSpocalypse’?
The worst of the software sell-off phase may be over, but private credit firms are still assessing the extent to which it will impact US portfolios over the coming months and years. David Brooke reports.
SEC regulators lay out their intentions
Issues around private credit valuations and payment-in-kind instruments are on US Securities and Exchange Commission regulators’ radars, according to body officials.
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PEI PRIVATE CREDIT 200 RANKING
PEI Private Credit 200: North American GPs reinforce their dominance
Our annual ranking of private credit's biggest fundraisers also shows capital raising increasing overall – and rising especially fast for the largest fund managers.
FURTHER ANALYSIS
Gordon Brothers: Navigating hidden risks in private credit
A proactive approach to risk across portfolios and assets is key to staying on the front foot, say Gordon Brothers’ global head of credit Mark Bohntinsky and chief transaction officer Kyle Shonak.
Prospect Capital on finding untapped opportunities in the lower mid-market
Grier Eliasek of Prospect Capital says a bifurcation in direct lending approaches has led to a proliferation in mid-market opportunities in the US, benefiting firms with the right resources.
Private credit is underestimating physical climate risk
Lenders must embed adaptation and resilience readiness into standard credit assessment, writes Ravi Singh, senior manager at Institutional Investors Group on Climate Change.
Apogem Capital on why a credit-first approach matters
Sponsors can complement good underwriting but not replace it, say Apogem Capital’s Bill Kindorf and Adam Willis.
PREVIOUS COVERAGE
How are the Trump administration’s policy changes impacting private credit?
The ‘America First’ approach brings new priorities for lenders, with uncertainty a constant presence.
Three key trends in US private debt: A market in flux
US lenders and investors attempt to keep pace with a rapidly evolving inflationary and political environment.
US investors seek out new fundraising shores
Legislative uncertainty prompts LPs to look beyond US-focused direct lending funds, even as the market retains its dominance in private credit fundraising tables.
Residential transition loans face a challenge of categorisation
Sitting apart from both the home mortgage lending and commercial real estate worlds, RTLs are caught between two camps – but they could change the face of the US housing market.
Churchill Asset Management: A lending revival
Both senior lending and junior capital dealflow are poised for a significant resurgence as uncertainty eases and M&A activity returns, say Churchill Asset Management’s Derek Fricke and Jill White.
Gordon Brothers: Leveraging hard assets for long-term resilience
Sponsors and management teams should be proactively monitoring and monetising their hard assets in the same way they do their real estate and financials, say Gordon Brothers’ Norma Kuntz and Frank Morton.
Balance Point Capital: The next stage of private credit
Investors are carving out more sophisticated, granular and nuanced private credit allocation strategies capable of delivering real alpha, says Balance Point Capital partner Adam Sauerteig.
Despite a first-half decline in US fundraising, investors and fund managers sense the signs of a rebound. LPs are continuing to favour private debt over other asset classes and, liquidity constraints not withstanding, are keen to invest more. In Private Debt Investor’s US Report 2024, we pick out five key themes for investors and show why the future looks bright for private debt in an array of different sectors.
Key trends in US fundraising
A difficult environment for fundraising skews the odds in favour of the largest managers.
US private credit on the brink of a rebound
All the signs show that the tide is beginning to turn.
Five key themes for US investors
Differentiation has become the buzzword as institutional LPs look to build out their private credit strategies.
Tech and healthcare are back
Sector specialism is in vogue, especially in areas where valuations have come down.
Open-end funds appeal in hunt for liquidity
The range of alternative structures on offer continues to grow.
Investors remain split on ESG
There is a growing divide between US and European LPs on responsible investing.
The speciality finance opportunity is opening up
Asset-backed lending taps underlying loans that were previously the domain of banks.
Real assets offer stability
Infrastructure as an asset class has benefited from a flight to quality.
TPG Twin Brook: The lower mid-market offers LPs an attractive diversification play
We believe lending to smaller business has some distinct advantages for investors, says Trevor Clark, founder of TPG Twin Brook.
Alter Domus: Honing operating models to capture growth opportunities
Whether you opt to outsource or run your own team, experience is key, says Greg Myers, global sector head, debt capital markets at Alter Domus.
CRG on lending to the healthcare disruptors
The cost of US healthcare is going up but outcomes are getting worse – the venture community is at the heart of the search for innovative solutions, says Luke Düster, chief investment officer at CRG.
The looming maturity wall
With trillions of bonds due to reach maturity over the coming years, what opportunities could this present for investors?
Vista Credit Partners on why the golden era of private credit is not over yet
The US private credit market remains ripe with opportunities, with software-as-a-service a particular standout, says David Flannery, president of Vista Credit Partners.
Suntera Fund Services on keeping up with private credit’s evolution
The rapid growth of private debt is testing the mettle of loan administration teams, say Michael Von Bevern and Harvey Tian of Suntera Fund Services.
Barings on the next six months in direct lending
Bryan High, head of Barings’ Global Private Finance Group, reveals where he sees direct lending heading in the rest of 2024.
Churchill Asset Management: Direct lending is where LPs should be focused
Global trends are less of an issue in the traditional mid-market, say Churchill Asset Management’s Randy Schwimmer and Derek Fricke.
UBS Asset Management: ‘Terms are competitive, but there are still great transactions’
Convergence in the upper mid-market is creating opportunities, say Kevin Lawi and Christopher Kempton of the Credit Investments Group, UBS Asset Management (formerly Credit Suisse Asset Management).
What next for the regulation of private funds?
The SEC’s proposed private fund adviser rules may be dead in the water. But that doesn’t mean GPs can rest easy.
Global fundraising may have hit a seven-year low in the first half, but fund managers remain quietly confident that the US debt markets can retain investor interest. That’s partly because higher interest rates have failed to create the widespread distress that many predicted, but also due to the ability of speciality lenders to pivot in response to market dynamics.
Download PDI’s 2023 US report
Inside: Why it’s time to look beyond direct lending; Expert comment and analysis from industry leaders; The rise of speciality finance; A guide to real estate alternative lenders; A ranking of the 40 biggest real estate debt fundraisers; Plus much more…
Five trends to watch in US private debt
The growth of speciality finance is helping to drive the market.
Expanding horizons: Why it’s time to look beyond direct lending
Fundraising may have slowed, but US private debt still looks resilient.
Twin Brook: Remaining disciplined in the face of headwinds
As competition for capital intensifies, private debt managers need to have the scale, flexibility and experience to meet investors’ varying needs and navigate a challenging environment, says Jeff Frank, head of capital solutions & strategy at Twin Brook.
Inside the rise of speciality finance
Asset-based strategies are proving a welcome diversification away from corporate credit risk.
Evergreen structures remain a work in progress, says Barings
Evergreen vehicles are attracting retail investors to private debt, but the big LPs need more convincing, says Barings’ Tyler Gately.
Churchill Asset Management: ‘An excellent time to deploy capital’
Randy Schwimmer is co-head of senior lending and Jason Strife is head of junior capital and private equity solutions at Churchill Asset Management.
The changing face of venture debt
With traditional routes to finance drying up, tech firms are weighing up their direct lending options.
All systems still go for enterprise software, says Thoma Bravo
Enterprise software is an attractive industry for private equity and offers real opportunity for direct lending, says Thoma Bravo’s Oliver Thym.
Alter Domus on suiting up for rough waters
Private equity firms looking to launch their first debt fund are in for a series of challenges if they do not have the operational infrastructure to administer it, warns Alter Domus’s Greg Myers.
There’s no better place than the US to take the temperature of the private debt market. Whether it’s fundraising levels, deal terms or investor sentiment, the world’s biggest credit market is the perfect bellwether for how fund managers are coping with today’s macro challenges. The good news for investors is that the mood is surprisingly upbeat. Yet again, this most durable of asset classes seems to be weathering the storm. Read why in our US Report 2022.
Download PDI’s 2022 US report
In the magazine: How debt is offering downside protection; Specialist tech lenders eye an opportunity; The leading LPs targeting the asset class; Keynote interviews and expert comment from industry leaders; Plus much more…
Key trends: Private debt seen as offering downside protection
Whether it’s the average fund size, the size of the overall market or the scale (and ambitions) of the fund managers, the industry has expanded at a pace that has surprised many in the finance industry.
Seeking downside protection via debt
Fundraising took a hit in the first half but credit is expected to rebound fast as managers adapt to more challenging circumstances.
Specialist tech lenders eye an opportunity
Debt is proving an attractive option for tech firms that are being frozen out of the equity markets.
Roundtable: Private debt prepares to ride out the storm
A volatile macroeconomic environment presents both risks and opportunities for private debt – but five influential figures in the US private debt industry tell us that the asset class remains on a growth trajectory.
Twin Brook: Consistency of approach is key for credit managers
With predictions of a choppy period ahead in the macro environment, direct lenders in the mid-market stand to benefit if they remain reliable partners to borrowers and PE sponsors, says Trevor Clark, founder and managing partner at Twin Brook Capital Partners.
Credit secondaries take off as LPs see benefit
Demand for debt solutions is booming for many different reasons. Panic is not one of them.
MetLife on opportunities in private commercial mortgages
Despite some headwinds, many parts of the commercial mortgage market can offer good relative value today, say William Pattison and David Politano of MetLife Investment Management.
Barings: Portfolio diversification is key to weathering the storm
An over-reliance on upper mid-market deals may leave some platforms exposed as liquidity dries up, warns Barings’ Ian Fowler.
AB Private Credit Investors: Opportunities remain for well-positioned lenders
Volatile markets create opportunities for direct lenders that are appropriately funded and flexible, says Brent Humphries, president of AB Private Credit Investors.
The changing face of real estate credit
From a binary choice to a rich seam of sectoral, geographical and risk-orientated opportunities, the real estate credit market has really grown up.
KKR on private junior debt coming of age
A private junior debt strategy offers higher yields than fixed income vehicles and lower risk than equity investments, says KKR’s Michael Small.
Paul Hastings: Direct lenders are navigating rough seas
Direct lenders need to be strategic about higher default rates, according to William Brady, Kris Hansen and Jennifer Yount, partners at global law firm Paul Hastings.
Credit Suisse: Sponsors want a one-stop shop for public and private credit
Managers that offer options in both syndicated and private credit markets can capitalise in volatile markets, says Kevin Lawi, private credit portfolio manager and head of origination for Credit Suisse Asset Management’s Credit Investments Group.
Audax on navigating risk in a downturn
Managers can take advantage of rising yields – providing they can manage risk, says Audax Private Debt’s Kevin Magid.
Sanne: Private credit is well placed to weather tough times ahead
Managers who continue to work constructively with their underlying portfolio and are increasingly selective on new investments will emerge from this latest challenge strong, says Keith Miller, global head of private debt at Sanne, an Apex Group company.
Northleaf on finding strong relative value in a heightened risk environment
In a dislocated market, there is a wider band of relative value and more opportunity to optimise risk-adjusted return through selectivity, says Northleaf’s David Ross.
More than 12 months on from the pandemic-induced slump in sentiment, the US private debt market is in rude health. Our US Report looks at why private debt remains more popular than ever for investors in North America and whether the market is in danger of over-heating after recovering beyond pre-pandemic levels.
Download Private Debt Investor’s US report 2021
In the magazine; Why the US market is taking off; What the US can learn from Europe about ESG; A roundtable; Keynote interviews with Twin Brook Capital Partners, Paul Hastings, Sanne and Blue Owl Capital; Plus much more…
Five key trends in US private debt
The sector has emerged from last year’s covid-related uncertainty stronger than ever with fundraising on the up and ESG increasingly important.
Twin Brook Capital Partners on why experience and relationships matter
Navigating the pandemic has highlighted the value of strong relationships and the importance of experience when it comes to underwriting and portfolio management, say Twin Brook Capital Partners’ Drew Guyette, Tim Schifer and Tony Maggiore, who joined Private Debt Investor to discuss some of their takeaways from the past 18 months and expectations for the future.
ESG: What can US credit funds learn from Europe?
As factors such as regulation drive the sustainability conversation forward, we look at how US credit funds are faring.
Paul Hastings: ‘The private debt market is white hot’
Credit funds proved to be supportive partners to sponsors during the pandemic, and their ability to offer creative solutions is paying off as the economy recovers, say Kfir Abutbul, Bill Brady, Yousuf Dhamee and Jennifer Yount, partners at Paul Hastings.
Pushing the button: Why the US market is taking off
As US fundraising continues to soar post-covid, we take a look at what is driving its recovery, including which segments are the most popular.
Sanne on why responsible investing is more crucial than ever
Credit has been behind other asset classes on ESG, and the US market has lagged behind Europe and Asia, but now is the time to engage in the conversation, say Keith Miller, global head of private debt, and Karlien de Bruin, global head of ESG, at Sanne.
Private debt roars back to life
Six leaders in private debt talk about the spectacular rebound in market conditions for the US economy from 18 months ago.
Blue Owl Capital on a different kind of discipline
The strength of the current market represents both a challenge and an opportunity for direct lenders, says Alexis Maged, head of credit at Owl Rock, a division of Blue Owl Capital.
Why US investors prefer to stay close to home
US fundraising has recovered strongly in recent months. Private Debt Investor investigates why the spotlight is on North America.
H1 sees fundraising return in US market
North American-focused funds recovered in the first half, following a difficult year.
While private debt hasn’t escaped unscathed from the coronavirus pandemic, the disruptions have created long-awaited opportunities. PDI’s US Report 2020 takes the pulse of the US credit market and discovers why, while there is an uptick in confidence since June and there are definite grounds for optimism, defensive strategies remain top of the agenda.
Download Private Debt Investor’s US report
In the magazine: Is this a new era for US private debt?; How Kayne Anderson raised $1.3bn in two weeks; A US roundtable; Plus interviews with Twin Brook, Monroe Capital, Partners Group, Northleaf and MGG.
The search for a safe landing
A faltering global economy is opening up a new era for US private debt. Although there is nervousness about what the future holds, there is also a sense of opportunity amid the chaos.
Three key trends in private debt
The shock of the pandemic is starting to subside, but US private debt markets remain unpredictable.
Twin Brook: The state of the middle market
Nearly six months on from the outbreak of covid-19 in the US, Twin Brook Capital Partners’ Garrett Ryan discusses the pandemic’s effect on the middle market and the direct lending space thus far.
How Kayne Anderson raised a $1.3bn real estate debt fund in two weeks
Last month’s real estate debt fire sales at the outset of the covid-19 outbreak in the US were just the tip of the iceberg for private real estate
Monroe Capital: Adjusting to the ‘new normal’
As pricing and terms in the mid-market revert to the mean, Monroe Capital’s Tom Aronson and Carey Davidson explain how experience and relationships can improve outcomes for borrowers and investors alike.
Play defence – but don’t ignore the opportunities, says Partners Group
For investors mulling US private debt allocations, there are plenty of openings amid the covid-19 chaos. But investors should take a considered approach, advise Partners Group’s Christopher Hardison, managing director for private debt Americas, and Anna Filipovich, senior associate.
Roundtable: The growth opportunities and challenges from covid-19
Coronavirus was top of the agenda with four private debt experts this summer. Although there are bound to be some casualties, everyone agreed that private debt is well-placed to emerge strongly from this most unpredictable set of events.
Northleaf Capital Partners: Active portfolio construction is key to managing risk
Taking a rigorous and holistic approach to portfolio construction and analytics should be a priority for private credit investors, writes Jon McKeown of Northleaf Capital Partners.
Too late to the distressed party?
Recent months have seen high volumes of marketing dedicated to US distressed debt. Joe McGrath looks at whether there is too much money competing for the opportunities.
MGG Investment Group on covid-19: A lesson relearned
Lenders who stayed disciplined will reap the rewards in the post-pandemic economy, say Daniel Leger and Gregory Racz of MGG Investment Group.
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