What is Private Credit?
If you’ve been hearing private credit everywhere lately, you’re not imagining it. This market is quietly rewriting the rules of corporate finance—and 2026 is shaping up to be a “grow up or get left behind” year. Private credit is debt financing provided by non-bank lenders to companies through privately negotiated, non-traded loans, representing a fundamental shift in corporate financing away from traditional banking systems.
What you’ll gain in 90 seconds ⏱️
By the end of this post, you’ll know:
- why private credit keeps eating market share 🍽️
- where 2026 growth is coming from (and where the risks live)
- what to look for if you’re allocating (or lending) in this cycle 🧠
Why private credit keeps winning 🏦➡️📈
A few structural tailwinds are doing the heavy lifting:
- Banks pulling back (Basel IV pressure is a big part of the Europe story)
- Investors rotating into alternative assets and income strategies
- Rise of evergreen / semi-liquid structures (access goes up… so does complexity)
- A massive addressable market that keeps expanding
Bonus nerd note: the strategy’s appeal is boosted by floating-rate loans + senior-secured positioning + an illiquidity premium (often cited as ~200–250 bps over public leveraged loans).
2026–2030 growth outlook 🔭
Depending on how you measure the universe, the market’s scale is commonly framed around $2T–$3T+ today, with forecasts pointing to $4T–$5T territory by ~2029–2030. Translation: still growing… but not forgiving.
Quick “data viz” you can screenshot 📊
Implied growth runway (from the article’s compiled forecasts):
- 2026 → 2030: ~13.6% to 18.9% CAGR
- “Evergreen” private credit: ~45% YoY growth (as of mid-2025)
- Europe fundraising (2025): $65B (record pace)
The vibe shift: yield → underwriting ✅
Here’s the line that nails it:
“the next wave of growth will be defined by discipline, not hype” – Victor Jung, V Global Holdings
Why that matters: Credit quality is getting more attention. One datapoint to keep on your radar—some analyses suggest ~40% of private credit borrowers had negative free cash flow (up from ~25% in 2021), and “true” defaults may look higher once restructuring tactics are included.
5 questions to ask before you allocate 🧾
- Where do you sit in the capital stack (first lien vs. not)?
- How tight are the covenants (and how often are they waived)?
- What’s the plan for liquidity mismatch in semi-liquid products?
- How transparent is reporting (portfolio, marks, non-accruals)?
- What’s the manager’s track record in late-cycle environments?
What are your next steps 🚀?
If you’re investing, advising, or raising in 2026: don’t just chase yield—chase structure, process, and downside protection.
Contact Victor Jung, V Global Holdings for more information.