Board of Governors of the Federal Reserve System

Figure 1. Private Credit: From Investors to Borrowers

This figure is a flow chart illustrating the relationship among the principal parties involved in the private credit ecosystem. There is an arrow pointing from the “Investors” category in dark blue (including pension funds, insurance companies, sovereign wealth funds, endowments and foundations, family offices, retail investors (via registered vehicles), and banks) to the “Private Credit Vehicles” category in green. The “Private Credit Vehicles” category includes private debt funds, which are private investment funds; business development companies, which are closed-end funds; interval and tender offer funds, which are registered closed-end funds; and middle-market CLOs, which are securitization vehicles. Next, there is an arrow pointing from the “Private Credit Vehicles” category to “Private Credit Loans” category in orange (including corporate loans, asset-based and specialty finance, real estate debt, infrastructure debt, and other private credit loans). Finally, there is an arrow pointing from “Private Credit Loans” to the “Borrowers” category in purple (including nonfinancial corporate business, nonfinancial noncorporate business, other financial institutions, and rest of the world). There is a box entitled “Funding-side claims on private credit vehicles” that is below the first and second categories linked to both by dashed lines. This box includes more details on funding sources for the private credit vehicles, including bullets for “PD funds: LP interests and fund-level loans; BDCs: common or preferred shares, bonds or notes, bank loans; Interval & tender offer funds: fund shares, borrowing; and MM CLOs: rated debt securities and equity tranches.” There is a shaded box bordered with a dashed line around the Private Credit Vehicles category.

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Figure 2. Total Financial Assets of U.S.-Domiciled Private Credit Vehicles

This is a stacked bar chart showing annual data from 2012 to 2025. The y-axis measures billions of dollars, ranging from 0 to 1800. The chart displays four variables representing different vehicle types: "Interval and Tender Offer Funds" (tan), "Middle-Market CLOs" (red-brown), "BDCs" (light blue), and "PD Funds" (dark blue). Total assets show consistent and substantial growth throughout the period, increasing from approximately 240 billion dollars in 2012 to about 1.9 trillion dollars in 2025. PD Funds (dark blue) represent the largest segment, expanding from approximately 175 billion dollars in 2012 to about 940 billion dollars in 2025. BDCs (light blue) also demonstrate steady growth, increasing from roughly 40 billion dollars in 2012 to approximately 570 billion dollars in 2025. Middle-Market CLOs (red-brown) grew from about 26 billion dollars in 2012 to approximately 50 billion dollars in 2025. Interval and Tender Offer Funds (tan) grew from 100 billion dollars in 2021 to approximately 290 billion dollars in 2025.

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Figure 3. Asset Composition of U.S. Private Debt Funds

Panel A: Asset Levels

This is a stacked bar chart showing annual data from 2012 to 2025. The y-axis measures billions of dollars, ranging from 0 to 1000. The chart displays five variables representing different asset types: "Miscellaneous Assets" (tan), "Checkable Deposits and Currency" (red-brown), "Debt Securities" (gray), "Corporate Equities" (light blue), and "Private Credit Loans" (dark blue). Total assets demonstrate substantial growth throughout the period, increasing from approximately 175 billion dollars in 2012 to over 900 billion dollars in 2025. Private Credit Loans (dark blue) grew from 40 billion dollars in 2012 to about 530 billion dollars in 2025. Corporate Equities (light blue) increased from roughly 40 billion dollars in 2012 to approximately 170 billion dollars in 2025. Debt Securities (gray) grew from around 80 billion dollars in 2012 to about 120 billion dollars in 2025. Checkable Deposits and Currency (red-brown) increased from around 10 billion dollars in 2012 to approximately 40 billion dollars in 2025. Miscellaneous Assets (tan) grew from 10 billion dollars in 2012 to approximately 75 billion dollars in 2025.

Panel B: Asset Shares

This is a stacked bar chart showing annual data from 2012 to 2025. The y-axis measures share of total assets, ranging from 0 to 1.0 (0 to 100 percent). The chart displays the same five variables as Panel A: "Miscellaneous Assets" (tan), "Checkable Deposits and Currency" (red-brown), "Debt Securities" (gray), "Corporate Equities" (light blue), and "Private Credit Loans" (dark blue). Each bar represents 100 percent of total assets for that year. Private Credit Loans (dark blue) share grew from around 20 percent in 2012 to 57 percent in 2025. Corporate Equities (light blue) maintained around a 16-20 percent share between 2012 and 2025. Debt Securities (gray) share shrank from around 44 percent in 2012 to around 13 percent in 2025. Checkable Deposits and Currency (red-brown) maintained between a 4 and 9 percent share between 2012 and 2025. Miscellaneous Assets (tan) grew to around a 15 percent share in 2014 before falling to between 5 and 10 percent by 2025.

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Figure 4. Asset Composition of U.S. BDCs

Panel A: Asset Levels

This is a stacked bar chart showing annual data from 2012 to 2025. The y-axis measures billions of dollars, ranging from 0 to 600. The chart displays five variables representing different asset types: "Miscellaneous Assets" (tan), "Checkable Deposits and Currency" (red-brown), "Corporate Equities" (light blue), "Syndicated Loans" (medium blue), and "Private Credit Loans" (dark blue). Total assets demonstrate substantial and consistent growth throughout the period, increasing from approximately 40 billion dollars in 2012 to about 570 billion dollars in 2025. Private Credit Loans (dark blue) represent the largest segment throughout the entire period, growing from approximately 30 billion dollars in 2012 to about 460 billion dollars in 2025. Syndicated Loans (medium blue) begin in 2017 at around 10 billion dollars and grow to approximately 40 billion dollars by 2025. Corporate Equities (light blue) show steady expansion, increasing from roughly 5 billion dollars in 2012 to approximately 40 billion dollars in 2025. Checkable Deposits and Currency (red-brown) increase modestly from about 2 billion dollars in 2012 to approximately 15 billion dollars in 2025. Miscellaneous Assets (tan) represent the smallest segment throughout, growing from less than 2 billion dollars in 2012 to approximately 15 billion dollars in 2025.

Panel B: Asset Shares

This is a stacked bar chart showing annual data from 2012 to 2025. The y-axis measures share percentage, ranging from 0.0 to 1.0 (0 to 100 percent). The chart displays the same five variables as Panel A: "Miscellaneous Assets" (tan), "Checkable Deposits and Currency" (red-brown), "Corporate Equities" (light blue), "Syndicated Loans" (medium blue), and "Private Credit Loans" (dark blue). Each bar represents 100 percent of total assets for that year. Private Credit Loans (dark blue) consistently represent the largest share throughout the period, maintaining approximately 70 to 80 percent of total assets from 2012 through 2025. Corporate Equities (light blue) show a relatively stable share of approximately 8 to 11 percent throughout most of the period, with a slight decline toward the end. Syndicated Loans (medium blue) appear starting around 2017 at 14 percent of total assets and decline to around 8 percent by 2025. Checkable Deposits and Currency (red-brown) start at around 6 percent in 2012 and decline to around 3 percent by 2025. Miscellaneous Assets (tan) remain the smallest component throughout, consistently representing approximately between 1 and 6 percent of total assets between 2012 and 2025.

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Figure 5. Asset Composition of U.S. Interval and Tender Offer Funds

Panel A: Asset Levels

This is a stacked bar chart showing quarterly data from 2021 to 2025. The y-axis measures billions of dollars, ranging from 0 to 300. The chart displays six variables representing different asset types: "Miscellaneous Assets" (tan), "Checkable Deposits and Currency" (red-brown), "Debt Securities" (gray), "Corporate Equities" (light blue), "Syndicated Loans" (medium blue), and "Private Credit Loans" (dark blue). Multiple observations per year are shown. Total assets demonstrate substantial growth throughout the period, increasing from approximately 100 billion dollars in 2021 to about 290 billion dollars in 2025. Private Credit Loans (dark blue) grow from around 15 billion in 2021 to around 75 billion in 2025. Syndicated Loans (medium blue) grow from around 5 billion in 2021 to 8 billion in 2025. Corporate Equities (light blue) grow from around 40 billion in 2021 to around 130 billion in 2025. Debt Securities (gray) grow from around 15 billion in 2021 to around 40 billion in 2025. Checkable Deposits and Currency (red-brown) increase from approximately 3 billion in 2021 to around 6 billion in 2025. Miscellaneous Assets (tan) grow from around 19 billion in 2021 to around 35 billion in 2025.

Panel B: Asset Shares

This is a stacked bar chart showing annual data from 2021 to 2025. The y-axis measures share percentage, ranging from 0.0 to 1.0 (0 to 100 percent). The chart displays the same six variables as Panel A: "Miscellaneous Assets" (tan), "Checkable Deposits and Currency" (red-brown), "Debt Securities" (gray), "Corporate Equities" (light blue), "Syndicated Loans" (medium blue), and "Private Credit Loans" (dark blue). Each bar represents 100 percent of total assets. The composition shows notable shifts over the period. Private Credit Loans (dark blue) show an increasing share, from 16 percent to around 26 percent between 2021 and 2025. Syndicated Loans (medium blue) show a diminishing share from around 5 percent to 3 percent between 2021 and 2025. Corporate Equities (light blue) show a relatively stable share, between 37 and 44 percent, between 2021 and 2025. Debt Securities (gray) show a relatively stable share, between 14 and 18 percent, between 2021 and 2025. Checkable Deposits and Currency (red-brown) show a slight decrease from around 3 percent in 2021 to 2 percent in 2025. Miscellaneous Assets (tan) show a declining share, from around 19 percent in 2021 to around 10 percent in 2025.

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Figure 6. Debt and Leverage of U.S. Private Debt Funds

Panel A: Debt Levels

This is a line chart showing data from 2012 to 2025 Q4. The y-axis measures billions of dollars, ranging from 0 to 250. The chart displays two variables: “Total Debt” represented by a solid blue line, and “Domestic Bank Loans” represented by a dotted blue line. Total Debt begins at around 33 billion in 2012 and grows to around 230 billion in 2025. Domestic Bank Loans begin at around 23 billion before growing to around 150 billion in 2025.

Panel B: Debt-to-NAV Ratio

This is a line chart showing data from 2015 to 2025 Q4. The y-axis measures the ratio, ranging from 0.0 to 3.0. The chart displays two variables: “PD Fund 90th Percentile” represented by a dotted blue line and “PD Fund Mean” represented by a solid blue line. The mean line (solid) slightly increases from 2015 to 2025, starting from approximately 0.15 and ending at approximately 0.25. The 90th percentile line (dashed) increases from approximately 0.8 in 2015 to approximately 1.0 in 2025.

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Figure 7. Debt and Leverage of U.S. BDCs

Panel A: Debt Levels

This is a line chart showing data from 2012 to 2025 Q4. The y-axis measures billions of dollars, ranging from 0 to 300. The chart displays three variables: "Total Debt" represented by a solid blue line, "Domestic Bank Loans" represented by a dotted blue line, and "Corporate Bonds" represented by a dashed blue line. Total Debt begins at around 14 billion in 2012 and grows to around 110 billion in 2021 before accelerating to around 260 billion in 2025. Domestic Bank Loans follow a similar trajectory, beginning at around 10 billion in 2012 and growing to around 70 billion in 2021 before ending with 180 billion in 2025. Corporate Bonds begin at around 3 billion in 2012, grow to around 38 billion in 2021, and accelerate to around 82 billion in 2025.

Panel B: Debt-to-NAV Ratio

This is a line chart showing data from 2012 to 2025 Q4. The y-axis measures ratio, ranging from 0.0 to 3.0. The chart displays two variables: "BDC 90th Percentile" represented by a dotted blue line and "BDC Mean" represented by a solid blue line. The mean line (solid) shows a gradual upward trend throughout the period, starting at approximately 0.5 in 2012, increasing to around 1 in 2025. The 90th percentile line (dashed) demonstrates more volatility and consistently tracks above the mean. It begins at approximately 0.9 in 2012, fluctuates between 1.0 and 1.1 through 2017, then rises more noticeably from 2019, reaching a peak of approximately 1.8 around 2020. The 90th percentile line then declines to approximately 1.5 by 2025.

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Figure 8. Debt and Leverage of U.S. Interval and Tender Offer Funds

Panel A: Debt Levels

This is a line chart showing data from 2021 Q4 to 2025 Q4. The y-axis measures billions of dollars, ranging from 0 to 25. The chart displays two variables: "Total Debt" represented by a solid blue line and "Domestic Bank Loans" represented by a dotted blue line. Total Debt begins at approximately 5 billion dollars in 2021 and increases to around 21 billion in 2025. Domestic Bank Loans follow the same pattern, beginning at around 3 billion in 2021 and increasing to around 18 billion in 2025.

Panel B: Debt-to-NAV Ratio

This is a line chart showing data from 2021 Q4 to 2025 Q4. The y-axis measures ratio, ranging from 0.0 to 0.5. The chart displays two variables: "Interval and Tender Offer Fund 90th Percentile" represented by a dashed blue line and "Interval and Tender Offer Fund Mean" represented by a solid blue line. The 90th percentile line (dashed) shows considerable volatility throughout the period, starting at approximately 0.23 in 2021, fluctuates between 0.15 to 0.29 between 2021 and 2024 before stabilizing to around 0.15 by 2025. The mean line (solid) remains consistent throughout the entire period at approximately 0.05.

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Figure A1. U.S. Private Fund Assets by Fund Type, 2025

Panel A: Gross Asset Value, by Fund Type

This is a categorical bar chart identifying the resultant funds from the classification process of U.S.-domiciled funds in 2025 from the SEC Form PF and their gross asset value. The y-axis is measured in billions of dollars from 0 to 6000. The chart displays five categories: PE (private equity) in dark gray, HF (hedge fund) in darkest blue, RE (real estate) in dark blue, PD (private debt) in medium blue, and OTHER in light blue. PE reaches around 5400 billion, HF reaches around 2700 billion, RE reaches around 1300 billion, PD reaches around 940 billion, and OTHER reaches around 2000 billion.

Panel B: Gross Asset Value of PD Funds, by Private Debt Strategy

This is a categorical bar chart identifying U.S. Private Debt Funds by their subtype and gross asset value in 2025 from the classification process. The y-axis is measured in billions of dollars from 0 to 400. The chart displays five categories: Sr Direct Lending (red) at around 350 billion, Sub Direct Lending (medium red) at around 180 billion, Opportunistic (orange) at around 75 billion, RE & Other ABL (tan) at around 200 billion, and Other (gray) at around 140 billion.

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