Private credit supply continues to lag demand
Private credit markets globally remain highly competitive and borrower-friendly, with demand still exceeding supply.
The findings derive from a global survey by investment bank Houlihan Lokey, which gathered views from senior investment professionals across the private credit space in the second quarter of this year.
Read more: Most compelling investments ‘no longer on public markets’
“Despite ongoing macroeconomic volatility, private credit continues to demonstrate remarkable resilience,” said Michael Hommeyer, managing director in Houlihan Lokey’s capital solutions group.
Over 75 per cent of respondents expect transaction volumes to rise in the next six months, with 66 per cent anticipating stable margins and 25 per cent expecting further compression.
Read more: Private credit market “stronger” in 2025 than last year
“Competition for high-quality deals remains intense,” Hommeyer said. “Looking ahead, survey respondents overwhelmingly expect pricing, leverage, and terms to remain tight through year-end.”
Houlihan Lokey’s inaugural private credit market survey identifies technology/software, healthcare, business services, and financial/specialty finance as the main sectors driving demand in the coming months.
Read more: Continuation funds mark next stage of growth in private credit
