Private Credit investing is a form of lending capital outside of the traditional banking system, where lenders work with borrowers to originate and negotiate privately held loans that are not traded in public markets. Investor allocation to Private Credit has grown significantly in recent years, with a total market size of $2.7 trillion as of the end of 2025 and forecasted to grow to $3.8 trillion by 2029.
Historically, corporate borrowers have looked to banks for their lending needs. However, the number of US banks declined by 75% between 1986 and 2025. Much of that consolidation occurred in the years following the Global Financial Crisis (“GFC”) in 2008, as regulations and increasingly conservative lending policies among banks reduced their willingness to lend. As a result of these changes, the market opportunity for Private Credit has evolved over the last several decades as private lenders have stepped in to fill the need for capital.
As lenders have sought to address the capital deployment needs of investors with different risk and return profiles, a number of Private Credit investing strategies have emerged. Direct Lending, which is discussed in detail in whitepaper below, now accounts for the largest share of Private Credit assets under management, making up more than half of all Private Credit as of September 30, 2025.