Financing the Economy 2025 (Alternative Credit Council (AIMA))

Summary

• Global private credit assets under management reached approximately US$3.5tn at the end of 2024, marking a 17% increase from US$3.0tn at year-end 2023.p.4
• Corporate lending remains the core private credit strategy, representing 60% of current investments, while ABL, infrastructure debt, and real estate debt make up most of the remaining 40%.p.4
• Survey respondents deployed US$592.8bn across private credit strategies in 2024, representing a 78% year-on-year increase compared to US$333.4bn in 2023.p.4
• Institutional investors supply 76% of private credit capital, whereas retail investor participation has expanded to 24% of the private credit investor base.p.4
• Aggregate leverage across survey respondents stands at approximately 32% of net private credit AUM, with nearly 87% of flagship corporate lending funds operating unlevered or below 100% of NAV leverage.p.4
• Non-accrual rates for flagship corporate lending funds averaged 2.2% on an unweighted basis and 1.8% on a weighted AUM basis.p.5

Key insights

1. The top 20% largest private credit managers accounted for approximately 85% of total capital deployed in 2024.p.13
2. Capital deployment outside the US outpaced existing market share, with the US representing 54% of 2024 deployment despite holding 65% of global AUM.p.15
3. Pension funds and insurance companies remain the two largest institutional allocators to private credit, representing 24% and 18% of AUM respectively.p.25
4. Eighty percent of committed private credit capital captured in the survey is structured in closed-ended vehicles without redemption rights.p.36
5. The proxy default rate combining payment default, covenant default, and amended PIK interest stood at 7.4% by count as of September 2025.p.43
6. Floating rate structures dominate private credit, comprising over 90% of overall portfolio investments.p.44
7. Seventy-two percent of survey respondents reported average loan-to-value ratios below 50% in their flagship corporate lending funds.p.48
8. Fifty-six percent of portfolio companies in flagship corporate lending funds maintain net debt/EBITDA multiples between 4.0x and 5.9x, with an overall average of 4.9x.p.49