Private Credit's Surge Has Investors Excited And Regulators Concerned

Jun. 05, 2025 1:21 PM ETVPC, PRIV, PCMM
(7min)

Summary

  • Private credit has rapidly evolved from a niche asset class into a dominant force in the global lending ecosystem, now representing an estimated $2.5 trillion industry.
  • Regulators, including the Federal Reserve, the International Monetary Fund, and the Bank for International Settlements, are increasingly scrutinizing private credit’s role in financial markets.
  • For allocators and asset owners, private credit represents a strategic lever in pursuit of yield and portfolio diversification.

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By Pete Vatev, CFA, FRM

Private credit has rapidly evolved from a niche asset class into a dominant force in the global lending ecosystem, now representing an estimated $2.5 trillion industry[1] rivaling traditional bank lending and public debt markets. For institutional investors

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CFA Institute is a global community of more than 100,000 investment professionals working to build an investment industry where investors’ interests come first, financial markets function at their best, and economies grow.

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