Private credit has firmly crossed from satellite exposure to core portfolio allocation for registered investment advisors, according to the 2025 RIA Private Credit Usage Survey released by Alternative Fund Advisors. 

The survey found that 70% of RIAs now allocate to private credit, up from 62% in 2024, with another 21% planning to make their first allocation within the next 12 months  

Looking ahead, 58% of firms expect to increase private credit exposure in 2026, while just 11% anticipate a reduction, underscoring the asset class’s durability in client portfolios  

“What stands out is not just the growth in allocations, but how advisors are deploying capital,” said Marco Hanig, CEO and co-founder of Alternative Fund Advisors. “As advisors look ahead to 2026, the focus has shifted toward diversification across different sectors of the private credit market, especially asset-based and specialty finance strategies.” 

Private credit is also becoming a high-conviction exposure. More than 70% of RIAs allocate at least 4% of client portfolios to the asset class, and nearly one-third allocate 8% or more  

Funding is coming primarily from traditional fixed income, with 82% of advisors reallocating from bond holdings, signaling a structural shift in portfolio construction  

Diversification is accelerating both at the fund and strategy level. Nearly 65% of RIAs now use three or more private credit funds, while interval funds have emerged as the dominant vehicle, used by 80% of advisors in 2025, up from 58% a year earlier  

Direct lending remains the most widely deployed strategy, but allocations to asset-based lending and specialty finance rose sharply year over year  

“RIAs are applying the same discipline to private credit as for traditional asset classes,” Hanig added. “As the asset class matures, broad exposure is being replaced with nuanced allocations across multiple sub-sectors that enhance diversification.” 

The survey was conducted by Excella between October 20 and November 21, 2025, and included responses from 121 RIA investment professionals nationwide. 

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