WILMINGTON, DE — A new international study by CSC shows strong investor momentum toward private credit, with 82% of limited partners (LPs) expecting to increase allocations over the next three years. Of these, 42% anticipate “significant” growth, underscoring rising confidence in the asset class.
Portfolio diversification emerged as the top driver, cited by 76% of LPs, more than double those pointing to attractive returns at 36%. Private credit general partners (GPs) echoed this optimism, with 59% forecasting assets under management (AUM) growth of 6–10% and 31% expecting growth above 10%, according to CSC’s report, Private Credit 2025: Scaling Global Strategies Through Operational Excellence.
“Private credit has exploded into the mainstream, becoming a truly global, multijurisdictional phenomenon that looks set to attract more and more investor capital,” said Marshall Saffer, managing director, Funds and Capital Markets at CSC.
The study highlighted senior debt and asset-backed finance as leading strategies, while distressed debt ranked lowest for growth potential. Cross-border lending also stood out, with 79% of GPs expecting a significant rise in international activity.
Yet expansion comes with challenges. Administrative burdens—especially around reporting and risk transparency in cross-border strategies—are straining managers’ operating models. CSC found that 91% of LPs believe GPs who outsource to specialist service providers deliver stronger reporting. Key outsourced functions include SPV administration, collateral management, and loan agency.
“As our study found, GPs have voted with their feet when it comes to outsourcing operational support to dedicated third-party specialists—and even more for functions like loan agency,” said Constantinos Kleanthous, managing director, APAC at CSC.
As private credit cements its place in global portfolios, the report concludes that operational strength and specialist partnerships will be critical for managers seeking to scale and sustain growth.
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