The rise of private credit is one of the least-discussed structural shifts in post-2008 finance. As Basel III regulations pushed banks away from leveraged loans, private equity-backed lenders filled the gap — offering speed and flexibility in exchange for higher rates.
The market has grown from roughly $400 billion in 2015 to an estimated $1.7 trillion today. For mid-market companies that would once have relied on bank lending, private credit has become the default.
The concern among regulators is not the growth itself but the opacity. Unlike bank loans, private credit sits largely outside the reporting frameworks that allow central banks to monitor systemic risk in real time.
