Key facts
- Private credit funds provided $560 billion in new loans to U.S. businesses since 2023.
- The lending helped create over 6.5 million jobs.
- The lending generated approximately $897 billion in economic activity.
- California, Illinois, and Texas received the largest shares of economic activity.
- Institutional investors have increased allocations to private markets and hedge funds.
Private credit has emerged as a significant source of financing for U.S. businesses, particularly as traditional banks have tightened lending standards due to regulatory pressures. This alternative financing channel plays a crucial role in job creation and economic activity, with institutional investors increasingly allocating capital to these markets to diversify portfolios and seek long-term returns.