• Q1 2026 data shows that private credit loan portfolios remain broadly stable and resilient across multiple measures.
• 87% of loans tracked by Houlihan Lokey were valued above 97% of par, while loans valued below 90% of par remained concentrated among smaller borrowers.
• Markdowns in software have been contained: around 90% were under 2.5% of par and only 1.9% exceeded 5%.

The Alternative Credit Council (ACC) – the global representative of the private credit fund industry – has launched the new ACC Private Credit Quarterly Market Update, offering investors and policymakers a regular health check tracking key risk indicators within private credit loan portfolios.

Drawing on more than 70,000 loan valuations from Houlihan Lokey and other industry datasets, the ACC Private Credit Quarterly Market Update provides an evidence-based assessment of private credit loan portfolios, including valuations, borrower earnings, interest coverage, loss rates and the use of Payment-in-Kind facilities.

Key findings from the ACC Private Credit Quarterly Market Update include:

• Signs of stress are largely contained in specific sectors and borrower-size cohorts rather than spread across the market.
• Historical loss rates remain low - Aksia data cited in the paper shows that first-lien direct lending generated cumulative principal losses of 0.8% over the 2013–2025 period.
• Median borrower revenues rose 5.4% year-on-year, while median EBITDA increased 7.3%, marking an eleventh consecutive quarter of margin expansion.
• The availability and use of PIK features has increased but represents a modest share of capital at risk.

The ACC’s Private Credit Quarterly Market Update series will continue to track key credit indicators over time, with future editions providing regular analysis of valuation trends, borrower fundamentals and other emerging themes across private credit loan portfolios.

Jiří Król, Global Head of the Alternative Credit Council, said: “Private credit is a vital source of finance for businesses and an integral component of investor portfolios. This new quarterly series will provide regular insights into private credit portfolios, highlighting where performance remains resilient, where stress is emerging and the implications of these developments for investors and policymakers”.