Private credit market now a $45tn global opportunity
The opportunity in private credit has grown to $45tn (£33.5tn) globally and extends far beyond direct lending, according to a new report.
In its latest whitepaper ‘The $45T Private Credit Opportunity’, Oxane Partners sets out that the $45tn private credit market now spans asset-based finance, fund finance, securitised products and infrastructure finance, in addition to the $1.5tn direct lending space.
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Oxane Partners stated that private credit has “expanded far beyond corporate direct lending into a much broader opportunity set”, which it called “Private Credit+”, and which is more than 30 times larger “when viewed beyond the limited purview of direct lending”.
It has identified the total addressable private credit market as being worth an estimated $45tn.
Within this, asset-based finance represents a more than $20tn market opportunity, nearly half of the entire “Private Credit+ landscape”, given its compelling yields, diversification benefits, and significant growth potential, according to Oxane Partners.
The whitepaper stated that private capital is providing credit solutions “where traditional bank lending is contracting or no longer able to meet the more specialised needs of the market”.
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However, Oxane Partners also acknowledged that while bank retrenchment drove the initial growth of private credit, “banks are no longer stepping back – they are stepping up the capital structure” and now bank re-tranchement is providing “further impetus” to the growth of private credit.
“Private credit is often viewed through the narrow lens of direct lending, but that perspective misses the vast architecture of opportunity that lies beyond,” said Sumit Gupta, co-founder and managing director at Oxane Partners.
“At Oxane, we see Private Credit+ as a paradigm shift – a $45tn market that spans investment-grade credit, asset-based finance, securitized products, fund finance, corporate credit, commercial real estate, infrastructure finance, and other structured solutions. This is not an evolution; it’s a redefinition of scale.”
“As credit markets continue to expand in scope and complexity, banks and private credit managers are working more closely than ever, and we see firms prioritising partners who can simplify, integrate, and scale,” Kanav Kalia, managing director at Oxane, added.
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