Annual Global Private Debt Report 2025 (PitchBook / NVCA)

Summary

• Private debt fundraising reached $221.2 billion in 2025, the second leading fundraising strategy in private capital markets behind private equity.p.4
• 83.5% of capital raised came from funds of $1 billion or more, a record, while those funds accounted for only 31.7% of the fund count.p.5
• First-time managers raised 18 funds totaling $3.7 billion.p.5
• Direct lending raised $101.7 billion across 55 funds, or 46% of all private debt capital.p.9
• Private debt AUM nearly reached $2 trillion as of Q2 2025 and surpassed $2.5 trillion including perpetual capital vehicles.p.9
• Private debt funds generated a rolling one-year IRR of 3.9% through the first half of 2025, versus five- and 10-year IRRs of 9.2% and 7.8%.p.25
• Global take-private activity reached $178.6 billion in H2 2025, up 135.1% from H1 2025.p.22

Key insights

1. Direct lending AUM stands at $742.2 billion, up from $90 billion in 2014, a CAGR of 22.2% versus 13.6% for global PE AUM.p.9
2. Private debt dry powder totaled $618.2 billion as of June 30, 2025.p.9
3. Mezzanine was an exception, with 27 funds closing on $11.3 billion, year-over-year increases of 28.6% and 84.9% respectively.p.11
4. Ares closed the largest fund of the year, Ares Capital Europe VI, at $17.7 billion, around a 35.1% step-up from its predecessor.p.11
5. European funds overtook North American funds in the share of direct lending capital raised in 2025 by just 100 basis points.p.11
6. Infrastructure debt generated a one-year return of 7.5%, direct lending 6.3% and real estate debt -0.7%.p.26
7. A 2025 executive order opened defined contribution plans to private market assets, a roughly $12 trillion opportunity.p.7
8. US leveraged loans returned -0.78% in February, their worst monthly performance in more than three years.p.20