Private credit is a hot topic. We estimate $US1.7 trillion in assets under management globally for the asset class, and it is growing. Around $US120 billion was raised in 2014, increasing to a peak of $US275 billion in 2021. Raisings have been slower since then due to a rebound in more liquid instruments and the expectation of rate cuts. The Australian market for private credit is at an earlier stage of development, but still attracting investment. The opportunity has seen some savvy fund managers buy private credit capability.

Two recent examples are listed HMC Capital buying Payton Capital, and Regal purchasing Merricks Capital and its $2.9 billion in assets. A high-profile example of growing assets under management is Metrics Credit Partners, which has just passed $20 billion in assets under management from a standing start in 2013.