Unrealised potential

Chart

Investors are struggling to get as much invested in private credit as they would like, although there has been a surge in allocations from sovereign wealth funds.

With three quarters of institutions under-allocated to private credit – according to Private Debt Investor’s H1 2025 Investor Report – there is a huge potential pool of capital waiting to be tapped by managers, though it should be noted that many LPs face challenges elsewhere in their portfolios, which may be slowing down their ability to deploy into private credit.