Private credit’s story in 2026 is becoming less about credit stress and more about lender opportunity. While market sentiment has been tested by persistent inflation, AI disruption, and fundraising pressures, borrower fundamentals have steadied while market conditions have become more lender friendly. As financing demand accelerates and spreads widen, we believe the balance of power is shifting back toward lenders and creating a more attractive environment for private credit deployment.
Our 2026 Mid-Year Outlook explores what’s driving this shift, the growing role of flexible capital solutions, and why we believe today’s market environment may support improving returns going forward.