Private Credit Market Trends and Insights Q4 2023

This report provides an analysis of the private credit market as of Q4 2023, detailing the challenges faced by borrowers due to high interest rates and stringent capital requirements. It outlines the growth of the private credit market, which reached $1.3 trillion by the end of 2022, with projections suggesting it could double by 2026. The report highlights the increasing participation of boutique asset managers, wealth managers, and family offices in the private credit space, as they seek to provide funding for small and medium-sized enterprises. The methodology includes insights from 77 interviews conducted in the summer of 2023 with various asset managers and wealth managers. Key findings indicate a strong expectation among investors for private credit to outperform traditional asset classes, driven by factors such as portfolio diversification and income generation. The report also discusses barriers to growth, including liquidity issues and high fees, which could impact future investment in private credit.