By: Chloe Swierzbinski
Sr. Manager, Product Marketing
March 12, 2025
Private credit has seen remarkable growth. What was once a niche $1.7 trillion market focused largely on direct lending for middle-market companies is growing into a $40+ trillion industry encompassing areas such as asset-based finance, project finance, royalty finance, and much more.
At Fund Finance Association’s 14th Annual Global Fund Finance Symposium in Miami, industry leaders—including private credit fund managers, lenders, rating agency analysts, and legal professionals—discussed navigating the growth of private credit, increasing competition, and the changing role of fund finance.
The Golden Age? Not Yet
Private credit is more established than ever, but whether we’re in a true “golden age” remains debatable. While the market has matured and become a critical component of institutional portfolios, it’s still in the early stages of broader adoption. More investors, regulators, and borrowers are only beginning to fully understand and engage with private credit, meaning the market still has significant room to grow.
The market has become increasingly competitive, with spread compression challenging returns, rising Collateralized Loan Obligation (CLO) activity reshaping dynamics, and operational efficiencies redefining what success looks like. With managers facing pressure to differentiate their strategies and explore new opportunities within the evolving ecosystem, innovation in deal structuring, identifying untapped niches, and leveraging technology are essential to remain competitive.
How does technology fit in? Purpose-built platforms, such as Allvue, support the complex needs of private debt, fund finance, and CLO managers. Integrated investment management solutions and data-processing capabilities can streamline reporting, improve efficiency, and enhance decision-making.
Fund Finance is Becoming More Strategic
As private credit grows, the role of fund finance evolves. While subscription lines remain key, managers are increasingly using solutions such as Asset-Based Lending (ABL), CLOs, and securitization to optimize financing throughout a fund’s lifecycle.
Panelists highlighted trends such as perpetual capital structures and new fund models that aim to improve liquidity and flexibility. Goldman Sachs discussed the growing use of securitization in fund finance, which brings alternative investor classes into the subscription lines market, creating more stable funding sources. Securitization also allows lenders, particularly banks, to reduce risk by minimizing balance sheet exposure and ultimately increasing lending capacity.
Bank and Private Credit Partnerships Are Reshaping the Market
The dynamic between banks and private credit has shifted significantly. Where banks once viewed direct lenders as competitors, they’re now actively partnering with them to expand lending capacity and tap into new investment opportunities. This partnership allows banks to maintain strong client relationships while offloading risks and private credit firms to gain access to wider origination capabilities and new geographic opportunities.
Panelists noted that successful collaboration depends on aligning objectives, defining roles clearly, and ensuring proper risk-sharing structures. Technology can facilitate and enhance these partnerships by enabling data sharing, simplifying reporting processes, and promoting operational transparency.
What’s Next for Private Credit?
Looking ahead, there are a few trends that will shape the next phase of growth:
- Retail investors will play a bigger role
Historically, the industry has been dominated by institutional capital, but as firms look to scale, retail investors are expected to become a large funding source. This shift could broaden access to private credit investment opportunities.
- More hybrid financing structures will emerge
Private credit will continue to expand into areas such as securitization and asset-backed lending, creating more opportunities for tailored financial solutions.
- Technology will become a competitive differentiator
As fund structures become more complex, the ability to use technology for fund monitoring, data analysis, and reporting will be crucial for driving efficiency and a competitive edge.
At Allvue, we understand the complexities driving private credit’s evolution. Our solutions are designed to streamline the end-to-end fund lifecycle, helping managers save time on data processing, reporting, and tracking so they can focus on high-impact, strategic decision-making.
To learn more about how Allvue can support your private credit growth strategy, contact us today.
More About The Author
Chloe Swierzbinski
Sr. Manager, Product Marketing
Chloe Swierzbinski is a Senior Product Marketing Manager at Allvue. With a background in product marketing at leading financial technology companies, she brings deep expertise in understanding market trends and customer needs. At Allvue, Chloe is dedicated to delivering impactful go-to-market strategies that empower firms with innovative technology to drive efficiency and growth.
