Global Private Credit Market Reaches $3.5T as Deployment Hits Record High
Global private credit assets under management have reached $3.5 trillion, marking another year of rapid expansion for the asset class, according to the Alternative Credit Council’s (ACC) Financing the Economy 2025 report. The study — produced in partnership with Houlihan Lokey — shows that capital deployed hit a record $592.8 billion in 2024, a 78% increase from $333.4 billion the year prior. Overall market AUM grew 17% year-over-year, underscoring private credit’s continued role as a key source of non-bank financing.
While the U.S. remains the largest private credit market, representing 65% of global AUM, the European market is accelerating, supported by strong relative value opportunities and rising investment in strategic sectors including energy, transportation, digital infrastructure, and defense.
The findings reflect survey responses from 49 private credit managers overseeing $2.1 trillion in combined assets. Corporate lending continues to drive activity, comprising 60% of investments, with the remaining 40% spread across asset-backed lending, infrastructure debt, and real estate strategies.
“Our data shows another year of strong growth and diversification for the sector, underlining its importance as a financing option for borrowers and as a critical part of investor portfolios,” said Jiří Król, global head of the industry body. “Non-performing loan levels have risen in the last couple of years but appear to have stabilized around historical averages.”
Institutional investors still supply most capital — about 76% of commitments — but retail participation has risen sharply to 24%, with further growth expected as access vehicles evolve. Banks remain the primary lenders to private credit funds, though new entrants have enhanced competition and improved financing terms.
Despite higher rates and macro uncertainty, core credit metrics have remained steady. Defaults and stress indicators are easing from recent highs, and the ACC expects lower interest rates in 2025 to further relieve pressure on portfolios across the U.S. and Europe.
