Private Credit Primer: Part I - III, Private Credit 101, Fund & Deal Structures & Future of the Market

Winnie Cisar - Global Head of Strategy, CreditSights
Zachary Griffiths, CFA - Head of IG & Macro Strategy, CreditSights
Ian Walker, J.D.: - Head of Legal Innovation, Covenant Review
Jesse Rosenthal - Head of Banks, CreditSights
Josh Esterov, CFA - Head of Insurance, CreditSights
Kathleen Tang - Analyst, Strategy, CreditSights
Brian Perez - Analyst, Credit Strategy, CreditSights

In Part I, we discuss the current market size, drivers of growth, characteristics of lenders and benefits to borrowers as well as key benefits and risks to public markets.
Part II covers fund and deal structures; and
Part III looks at the future of the private credit market.
Private credit has exploded in popularity over recent years with increasingly large deal sizes funded solely through direct lending, new funds established and even traditional banking giants like JP Morgan are looking to partner with asset managers to access the burgeoning market. According to Preqin, an alternative assets data provider, the size of the US direct lending market in terms of assets under management has grown 2.8x (35% annualized) to $470.8 billion as of June 2023, outpacing growth in the outstanding HY bond and leveraged loan markets, which grew ~1.2x (3%-4% annualized) over the same period.
The global private credit market, including all strategies (i.e., direct lending, mezzanine and special situations) and asset classes (including securitizations), is estimated to have reached $1.7 trillion in 2023 and will grow 65% (9.5% annualized) to $2.8 trillion by the end of 2028. Google search trends confirm broad-based interest in the somewhat opaque asset class as queries for ‘private credit’ are at an all-time high (see chart below). In this three-part series we look to identify what the private credit market is, the benefits it provides for both lenders and borrowers, potential risks associated with the rapid growth of the market and thoughts on where the market is headed. Throughout this report, we leverage robust coverage of the private credit market already offered by our colleagues in Covenant Review, LevFin Insights and Fitch Ratings.

dress the covenants of these private notes in this report.

Would you like access to the full report?
Receive a complimentary preview of our Private Credit Primer

Request a Trial

Receive 1-month complimentary access to our research platform, where you can browse our library of expert-produced insights and reporting. Qualifying institutions can gain access to our platform.


Sign up to our Newsletter

It is our mission to enable fixed income professionals to know more, risk better, and ultimately create value. Sign up to receive our monthly newsletters to get the latest credit insights direct to your inbox.


Our Products

We’re proud to be the trusted resource for these credit research consumers:


The independent research and actionable ideas you need to help guide investment and risk management decisions.

Risk Products

From BondScore to Credit Quality Score and Fallen Angel Score, these products give you an analytial edge.

Covenant Review

In-depth analysis and impact assessment on current and future leveraged finance deals from the market’s trusted authority on bond and loan covenants.

LevFin Insights

News and analysis covering the debt capital markets including leveraged loans, high yield, secondary trading, CLOs, middle market and BDCs.

Markets Served

We’re proud to be the trusted resource for these credit research consumers:


From mutual funds, pensions and hedge funds to the world’s largest insurers, managers at these institutions are guided by our credit research


Financial intermediaries-the world’s broker-dealers, market makers and liquidity providers-rely on our credit insights each day


Brokers, financial advisors and private wealth managers entrusted with their clients’ assets leverage our intellectual capital when it comes to the credit markets