The private credit market has experienced remarkable growth, reaching $1.7 trillion in assets under management and 13% annual growth since the 2008 financial crisis. Rather than signalling a bubble, this expansion represents the evolution of a maturing asset class, offering institutional investors compelling opportunities for those who can navigate its increasing complexity.
Coming of age
Contrary to overheating concerns, institutional investors remain confident. According to Nuveen’s 2025 EQuilibrium survey, nearly half (49%) of the 800 global institutional investors surveyed plan to increase their private credit allocations over the next two years. Further, nearly 95% of global institutional investors who hold alternatives now allocate to some form of private credit, up dramatically from just 62% four years ago. The key question is not whether private credit has become too large, but how investors can discern quality and operate effectively in an increasingly sophisticated landscape. For institutions capable of separating signal from noise, this growth allows investors to focus on segments, structures and the managers most capable of delivering durable outcomes.
Segmented ecosystems
Private credit has matured into a diverse ecosystem encompassing distinct strategies, each with unique risk profiles, borrower attributes and regional dynamics. This segmentation spans three critical dimensions that institutional investors must understand for optimal portfolio construction.
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Supporting documents
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