Market Context: Capital in Motion

Private credit is now firmly entrenched as a strategic allocation for global investors. Over 40% of allocators on the iConnections platform report an interest in the strategy. The asset class’s appeal is no longer cyclical—it is structural.

Report Takeaways

Our latest Private Credit Allocator Report surfaces several clear trends:

  • Regional Growth Beyond North America: Of the global allocators with interest in private credit, there is now near-equal demand from APAC and EMEA investors. This is a meaningful step-change for APAC demand, which just a few years ago barely registered in allocator surveys.
  • Shifts in Allocator Profiles: LPs who are leaning into private credit: family offices, asset managers, consultants and OCIOs are over indexing their appetite for the strategy. Endowments and foundations’ appetite has slowed.
  • Private Credit’s Momentum Is Durable, and Its Strategies and Structures Are Increasingly Diversified: The strategy continues to benefit from secular tailwinds: bank retrenchment, sponsor demand, and allocator appetite for yield with downside protection. But the next phase of growth may be shaped by new access vehicles, global expansion, and rising interest in co investments, NAV lending, and evergreen structures.

Looking Ahead

Private credit is no longer a niche. With nearly half of allocators indicating appetite for the asset class, the conversation has shifted to manager differentiation. Underwriting discipline, access to proprietary deal flow, and transparent reporting are the factors most cited by LPs as decision drivers in an increasingly competitive landscape.

Read Report

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