Private credit funds are drawing in record sums of capital from everyday investors, offsetting a slowdown from large institutions as wealthy individuals are lured in by the higher returns on offer.
Affluent individual investors in the US have pumped $48bn into private credit funds in the first half of this year, already surpassing the entire haul in 2023 and on pace to eclipse the high-water mark of $83.4bn set in 2024, according to investment bank RA Stanger.
European investors are also diving in, with assets in so-called evergreen private debt funds across the continent more than doubling from a year ago to €24bn at the end of June, according to consulting firm Novantigo.