LPs Plan to Boost Private Credit Allocations as Global Demand Surges, Study Finds — Evening Brief – 10.06.25
Private credit continues to surge into the mainstream, with more than four-fifths (82%) of limited partners (LPs) planning to increase allocations to the asset class over the next three years, according to a new international study by CSC, a global provider of business administration and compliance solutions. Among those LPs, roughly two-fifths (42%) anticipate “significant” growth in their private credit exposure.
CSC’s research — which surveyed 300 general partners (GPs) and 200 LPs across Europe, Asia Pacific, and North America — found that portfolio diversification was the primary driver for increased allocations, cited by 76% of LPs, far outpacing return expectations (36%). The findings highlight the asset class’s growing role in institutional portfolios as investors seek stability and low correlation in a higher-for-longer rate environment.
Private credit managers share this optimism. Three-fifths (59%) of GPs forecast assets under management (AUM) growth of 6%–10% over the next three years, while nearly one-third (31%) expect growth above 10%. Senior debt and asset-backed finance were identified as the most attractive underlying strategies, while distressed debt ranked lowest in expected expansion. Cross-border lending also emerged as a major growth engine, with 79% of GPs expecting international activity to rise significantly.
“Private credit has exploded into the mainstream, becoming a truly global, multijurisdictional phenomenon that looks set to attract more and more investor capital,” said Marshall Saffer, Managing Director of Funds and Capital Markets at CSC. “We’re seeing first-hand how private credit has evolved, including innovation in structuring and cross-border strategies, and we’re well positioned to help GPs capitalize on strong demand.”
Yet, the rapid expansion of the asset class is introducing new operational and compliance challenges. CSC’s study warns that as cross-border strategies proliferate, fund managers face heightened complexity in reporting, transparency, and regulatory alignment.
“Private credit’s fast growth presents implicit challenges to operating models for fund managers,” added Constantinos Kleanthous, Managing Director, APAC at CSC. “It imposes considerable demands on them and other stakeholders, particularly when investing in multiple jurisdictions and across borders.”
As global investor appetite intensifies, the findings suggest private credit will remain one of the fastest-growing segments of private markets—driven by yield, diversification, and the globalization of non-bank lending.