The appetite for private credit remained “robust” in the first half of 2026, although underwriters have become more cautious towards technology assets, according to CVC Credit.

Despite headline noise around the asset class, the “fundamentals remain sound” for private credit, CVC said in a credit perspective report for the second quarter of 2026.

Private credit raised more than $208bn (£153.7bn) in the first half of 2026, with consistent flows across both quarters. Senior direct lending accounted for 60 per cent of capital raised in the period, up sharply from 42 per cent in 2025, the manager said.

CVC added that European private credit fundraising remained steady compared with previous years, “as investors continue to recognise the merits of an allocation within a diversified credit portfolio”.

Read more: Standard Life expands UK PRT offering 

The continued inflows into private credit come amid concerns over credit quality and the potential impact of AI disruption on the asset class, given its exposure to software.

CVC said that underwriters have become more cautious during the period, favouring more conservative deal structures and assets and rotating away from technology.

Technology’s share of deal activity in Europe fell from a high of 29 per cent in 2025 to 22 per cent in the first half of 2026.

Transportation, in contrast, saw marked growth as investors pivoted towards hard assets, the report said.

Read more: CVC Credit prices $550m CLO

Overall, deal activity in European direct lending was muted in the second quarter of 2026. However, CVC said the “outlook remains constructive for alternative assets, with volumes likely to improve as market conditions normalise”.

Read more: CVC sees Q1 growth spike on private wealth expansion