Already missing Monday's Private Credit Investor Forum Miami? Want to reminisce on the day's key highlights?

Check out the top takeaways from the only dedicated private credit conference during the annual alternative investment week in Florida are here!

1. Private credit’s expansion continues as institutional investors seek resilient income sources.

With AUM surpassing $3 trillion, private credit has established itself as a core allocation for institutional investors. Capital is increasingly shifting from traditional fixed income due to its attractive risk-adjusted returns, lower volatility, and diversification benefits. Growth areas beyond direct lending include asset-backed finance, real estate, and infrastructure debt, with Europe maturing and APAC emerging as a key region for expansion.

2. The integration of public and private credit is reshaping portfolio strategies.

The blurring of distinctions between public and private credit has led investors to adopt evergreen funds, interval funds, and SMAs to maintain flexible yet disciplined allocations. Liquidity premiums remain crucial, requiring a balance between yield enhancement and prudent risk management. Transparency and valuation discipline, including frequent reporting, are becoming standard.

3. Credit secondaries and NAV financing are driving portfolio optimization.

Credit secondaries reached transaction volumes, offering LPs efficient rebalancing and liquidity solutions. NAV financing, once a niche strategy, is now essential for GPs to restructure assets, extend investment horizons, and optimize capital deployment, reinforcing its role as a core portfolio tool.

4. Asset-backed finance (ABF), RE debt and infrastructure debt offer diversification and stability.

ABF continues expanding with lending opportunities in various areas of transportation and rental equipment leasing, merchant cash advances, and structured consumer finance. Real estate and infrastructure debt are also gaining traction as investors seek inflation-hedged, long-duration assets, as well as exposure to alternative sources of stable and predictable cash flows.

5. European private credit is maturing, with APAC set to follow.

Europe now represents around 30% of global private credit AUM, fueled by regulatory developments and institutional capital flows. While the U.S. remains the dominant market, investors are increasing allocations to European structured credit and infrastructure finance, and APAC is poised to become the next major growth region.

6. Portfolio stress remains manageable, with leverage at historically low levels.

While rising defaults and liability management exercises (LMEs) indicate increased borrower stress, LMEs are mainly confined to the BSL market. Relatively low LTV, decent EBITDA growth, and proactive risk management are contributing to sustainability. Downward portfolio adjustments have been countered by positive economic tailwinds, keeping private credit well-positioned for continued growth.

7. Market consolidation is intensifying, creating opportunities for emerging managers but also raising concerns among LPs.

With the top 20% of managers responsible for around 80% of capital deployment, increased consolidation is reshaping the industry. Investors don’t necessarily see consolidation as a positive development, worrying about the ability to integrate disparate businesses, changes in culture and incentives. Niche and emerging managers are finding opportunities to compete by focusing on specialty private credit strategies and non-core lending sectors, providing investors with differentiated options beyond large-scale firms.

8. Institutional investors are demanding greater alignment, transparency, and benchmarking.

As competition for capital increases, LPs are pushing for better fee alignment, co-investment opportunities, and performance-based fees. Bespoke benchmarking and the desire to identify alpha generation is becoming key to manager evaluation, reinforcing the need for demonstrated value.

9. Long-term allocations to private credit are rising, but selectivity is key.

Investors are moving from opportunistic to permanent private credit allocations, recognizing its stability across cycles. However, spread compression and competition necessitate disciplined manager selection and strategy diversification. “Land and expand” strategies, SMAs, and jurisdictional flexibility are now critical components of portfolio construction.

10. Innovation and specialization will define the next phase of private credit.

As private credit evolves, innovation in financing structures, risk management, and asset origination will define the next phase of growth. Managers who leverage specialized expertise, differentiated sourcing, and adaptive strategies will be best positioned to capture long-term capital. Institutional investors will continue refining their approach to balance risk, liquidity, and opportunity.