Fund finance market surpasses $1 trillion amid private credit surge

13 articles · Updated · Bloomberg · Apr 27

Moody’s Ratings reports that the fund finance market exceeded $1 trillion last year, driven by increased borrowing from investment vehicles managing liquidity and delayed exits.
The sector’s expansion has attracted nonbank lenders, including insurers, broadening the lending base and supporting further growth in private credit markets.
Fund finance vehicles now serve a $16 trillion global market of private credit and equity funds, highlighting the sector’s growing influence and integration within global financial systems.

Is the booming private credit market hiding risks that could spark the next financial crisis?

With regulators now scrutinizing private credit, is the $1.75 trillion party about to end?

Has private credit simply moved systemic risk from regulated banks into the shadows?

Are complex tools like NAV loans and CFOs brilliant innovations or just new ways to hide leverage?

Are investors in private funds trapped by hidden liquidity gates and questionable valuations?

What happens when new, untested lenders face their first real credit market downturn?