[Edaily Marketin YunJi Kim JI YEONG-EUI Reporter] While caution toward the private credit market has grown in the wake of the Blue Owl incident, demand from global institutional investors (LPs) remains undiminished. Although redemption pressure has surfaced in some retail-oriented products, leading to speculation that “the era of private credit may be over,” overseas LPs still appear to view private credit as a core income asset capable of generating stable interest returns. In contrast to domestic institutions taking a step back from private credit investments, the global market continues to see the formation of funds led by proven asset managers and differentiated strategies.

Global credit rating agency Moody’s forecasts that assets under management (AUM) in the private credit sector will far exceed $2 trillion (approximately 2,980 trillion won) this year and approach $4 trillion (approximately 5,961 trillion won) by 2030. In particular, the firm expects the private credit market—which has traditionally centered on direct corporate lending—to expand its growth drivers into asset-based finance (ABF), Europe, the Middle East, and Africa (EMEA), and the Asia-Pacific (APAC) regions. Analysts suggest that if mergers and acquisitions (M&A) and leveraged buyout (LBO) activity recovers, the role of private credit managers—as non-bank credit providers—could also grow significantly.

The appeal of private credit lies in its high yields. Even as interest rates enter a downward trend, private credit can provide stable income based on its flexible structure and liquidity premium compared to bank loans. Rather than viewing the recent redemption pressure on some retail products and asset valuation controversies as signs of market-wide weakness, the industry interprets this as a phase where performance varies depending on borrower selection, collateral structure, and recovery capabilities.

Amid this climate, global asset managers are rapidly launching private credit funds, each with its own distinct strategy. Notably, Antares Capital raised its third senior loan fund this month, totaling approximately $8.5 billion. This exceeds the initial target of $6 billion and represents an increase of about 42% compared to the previous fund established in 2023. The fund primarily invests in senior secured loans to middle-market companies in the U.S. and Canada.

Adams Street Partners also closed its third private credit platform last month with $7.5 billion in assets under management. This strategy focuses on providing senior financing to sponsor-owned middle-market companies in the U.S. and Europe. In addition, Ares Management secured $7.1 billion in investable capital earlier this year through a credit secondary strategy. Of this amount, LP commitments totaled approximately $4 billion, double the initial target of $2 billion.

As the private credit market grows, investment approaches are expanding beyond direct lending to include secondary investments and co-investments. Stepsone Group finalized the formation of a $1.58 billion fund of this type at the end of March. Unlike typical private credit funds that lend money directly to companies, this fund seeks investment opportunities by purchasing stakes in existing private credit funds at a discount or by co-investing in loan opportunities identified by other asset managers. It is widely believed that as the private credit market matures, investment strategies are becoming increasingly specialized.

Consequently, market observers are concluding that it is no longer feasible to treat private credit as a single asset class. While in the past, the mere label of “private credit” was enough to attract capital, it is now explained that investment appeal varies depending on the specific strategy—such as senior secured loans, asset-based finance, credit secondaries, and opportunistic credit. LPs are also increasingly scrutinizing borrower quality, collateral value, recovery track records, and the manager’s underwriting capabilities more closely than simply focusing on target rates of return.

In this regard, a source in the global capital markets stated, “Recent concerns surrounding private credit do not mean the market is disappearing; rather, it signifies that the market is beginning to distinguish between good and bad strategies,” adding, “As long as the lending gap in the banking sector persists and demand for stable income continues, funds will steadily flow into private credit funds managed by proven asset managers.”