The recent BVCA Private Credit Conference in late March brought together industry leaders, fund managers, and institutional investors to discuss the evolving dynamics of the private credit market.
Nick McHardy, our Group Head of Funds, joined the event and, as we continue to support our clients across the alternative assets space, shares several key themes and insights that stood out from the event.
- Private credit enters its maturity phase
Private credit is no longer the “emerging” asset class it once was. With assets under management surpassing $1.7 trillion globally, and forecasts pointing towards continued growth, the market is showing signs of maturity.
The sector maturity is resulting in increased competition, requiring managers to differentiate themselves such as through origination capabilities, sector specialisation, retailisation and value-added borrower support.
There was extensive panel discussion over the relationship that Private Credit managers have with Banks with an overall consensus toward symbiosis.
Private Credit managers and banks may compete within the mid-market and institutional lending space however they have very different priorities and a very different risk appetite so their products and offering are often complementary or conversely offer a different type of solution to borrowers increasing market liquidity.
In the upper market, as there are now very large private credit funds looking to deploy, this has blurred the distinction between what a bank would typically lend compared with private credit.
- Shift from opportunistic to scalable and repeatable models
One of the most discussed evolutions is the shift in strategy from opportunistic, deal-by-deal lending to scalable and repeatable credit strategies. This trend reflects LP preferences for consistency, predictability, and operational efficiency.
This is unsurprising given the investor mix shifting away from the domination of institutional drawdown fund routes with roughly half of global fundraising in 2024 sourced from perpetual vehicles in wealth and insurance segments[1].
Fund managers are responding by building more institutional-grade platforms — complete with enhanced technology stacks, deeper origination pipelines, and a broader geographic footprint. The emphasis is on building businesses that are resilient across cycles.
- Return expectations and risk appetite adjust
In an environment of higher base rates, return expectations have recalibrated and spreads have reduced.
Average direct lending spreads have decreased from c625 Bps in 2022 to 550 Bps in 2025 YTD and repricing activity reached an all time high in Q1 2025 where borrowers are able to shave off spreads.
- Fundraising is challenging despite the headline capital raise
There was much discussion around fundraising, however it is apparent there is a very polarised market with the very large managers increasing their fund sizes whilst the more modest managers fight to compete in an increasingly competitive market.
The number of funds closed in 2024 showed a YoY decline of 50% whilst institutional flows into private debt funds will exceed $200 billion for the fifth consecutive year.
- Technology and data driving operational edge
Digitisation was another recurring theme. Private credit managers are investing in technology to streamline portfolio management, improve data visibility, and deliver transparent investor reporting. As platforms scale, operational efficiency and real-time insight become critical to maintain investor confidence and regulatory compliance.
At Belasko, we’re seeing first-hand how best-in-class technology enhances the fund lifecycle — from onboarding and reporting to compliance and ongoing NAV support.
- ESG integration continues as expectations climb
While ESG remains an ever-increasing strategic priority for many investors and managers, several speakers noted the challenge of standardising ESG metrics and reporting in private credit. Unlike equity investments, where governance rights are stronger, credit investors must work harder to influence borrower behaviour and track ESG performance.
Nevertheless, the direction of travel is clear: ESG integration will remain a core pillar to fundraising and regulatory scrutiny.
Looking ahead
The private credit market continues to evolve at pace, blending attractive returns with increasing complexity.
As the sector matures, fund managers will need to balance growth and responding to market opportunity with operational effectiveness through embracing technology.
At Belasko, we have the expertise, technology and service quality to support our clients through this exciting phase — offering the operational and strategic infrastructure required to scale with confidence.
If you’d like to discuss how Belasko can support your private credit strategy, please get in touch.
[1] Source: Pitchbook 2024 Annual Global Private Debt Report
