The private credit market is emerging as one of the fastest-growing segments in alternative investments, driven by bank lending pullbacks, institutional demand, and direct lending strategies. By 2025, global private credit assets under management (AUM) are projected to reach $1.6 trillion, growing to $2.4 trillion by 2030, at a CAGR of 8.5%. The U.S. will continue to dominate with ~60% market share, while Europe expands to ~25%, supported by regulatory changes favoring non-bank lending.
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Direct lending remains the largest sub-strategy, expected to represent 45–50% of total private credit AUM by 2030, while distressed debt and opportunistic credit strategies expand amid rising interest rates and refinancing risks. Institutional investors, including pension funds and insurance companies, are increasing allocations, with surveys showing 30–35% of LPs plan to raise private credit exposure by 2027. Yield premiums over public credit average 300–400 bps, making the asset class highly attractive in a high-rate environment.
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Private credit is no longer a niche alternative it is becoming a mainstream financing channel, offering investors yield stability and borrowers flexible capital, reshaping debt markets in the U.S. and EU.
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5 Key Quantitative Takeaways (2025–2030, US & EU):
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• AUM growth: $1.6T → $2.4T (CAGR 8.5%)
• U.S. market share: ~60%
• European market share: ~25%
• Direct lending share of AUM: 45–50% by 2030
• Yield premiums over public credit: 300–400 bps
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Download the full report to explore private credit AUM growth, sub-strategy trends, and institutional adoption across U.S. and European markets.

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