A Reuters article published on Feb. 26, 2025, predicts a substantial rise in private credit activity this year, fueled by high interest rates and shifting dynamics in traditional banking.
With borrowing costs elevated — SOFR at 4.8% — private credit funds managing over $1.7 trillion are stepping in where banks hesitate, offering flexible financing for middle-market firms. Experts note a 25% jump in deal volume in 2024, with firms like Ares Management and Blackstone leading the charge.
“Private credit is going to get bigger,” Michael Arougheti of Ares said, citing bank collaborations that pair scale with agility.
Specialty lenders and private equity players see opportunities in asset-based lending and mezzanine deals as banks offload risk. Regulatory pressures and a cooling IPO market further amplify the trend.
