Private Credit Funds Lent $560 Billion to US Businesses Since 2023 as Banks Retrenched
Updated
Updated · Reuters · Jun 1
Private Credit Funds Lent $560 Billion to US Businesses Since 2023 as Banks Retrenched
2 articles · Updated · Reuters · Jun 1
$560 billion in new private-credit loans reached U.S. businesses over the past three years, according to an MFA report seen by Reuters.
6.5 million jobs and about $897 billion in economic activity were tied to that lending, with California, Illinois and Texas taking the largest shares.
Stricter regulation pushed traditional lenders away from riskier borrowers, and private credit managers expanded to fill that financing gap.
The report also said U.S. pensions, endowments and foundations now allocate roughly $1.6 trillion to hedge funds, underscoring the broader rise of alternative asset managers.
Private credit fueled millions of jobs. With defaults now at record highs, could its downturn erase those economic gains?
As private credit enters 401(k)s, are retirement savers unknowingly buying into a market facing a potential liquidity crisis?