Asset-backed finance (ABF) and specialty finance are expected to lead private credit growth in the coming years, ahead of corporate direct lending, according to a recent survey by Oxane Partners.

The research, titled Compass 2026, found that private credit remains firmly positioned for growth, with 83 per cent of respondents expecting assets under management to increase over the next 12 to 18 months.

When asked about the key drivers of growth, 66 per cent of respondents cited ABF and specialty finance as leading the expansion, followed by fund finance (60 per cent) and corporate direct lending (56 per cent).

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The survey spans direct lending, ABF, fund finance, real estate, securitised products, infrastructure and significant risk transfers – a market that Oxane, a solutions provider to the industry, defines as Private Credit+.

The research surveyed more than 380 professionals across global private credit markets.

“ABF and specialty finance are leading growth because the market has moved beyond a simple direct lending story,” Kanav Kalia, managing director at Oxane Partners, told Alternative Credit Investor. “Direct lending is now highly competitive, and investors are looking for diversification and for parts of the market where there is still room to structure good risk-adjusted returns.

“ABF fits that well because it is linked to underlying assets and contractual cash flows, while borrowers are also looking to unlock value from those assets.”

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The survey also found that securitised products are gaining momentum, with 49 per cent of active firms planning to increase deployment.

“Securitised products are part of the same broader shift,” added Kalia. “As investors become more comfortable with asset-backed and collateral-based strategies, they are also looking at structures that allow them to access pools of assets with different risk-return profiles, different levels of seniority and more tailored exposure.”

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