Private Credit Market Surpasses $10 Billion, Blackstone Plans India Entry

Private credit, a rapidly growing segment of alternative finance, is gaining prominence as an attractive investment class due to its diversification, yield, and resilience amid volatile public markets and tighter banking regulations. AB CarVal highlighted asset-based finance as a transformative force outside traditional bank lending, offering institutional and private clients exposure to credit-intensive strategies. MSCI data shows private credit funds outperformed private equity funds for the third consecutive year, benefiting from higher interest rates and floating rate instruments, which offset defaults and write-downs. In India, private credit has expanded significantly, evolving from small-ticket loans to a $25 billion market that provides bespoke financing solutions to mid-market companies underserved by banks. Despite enthusiasm, skepticism remains regarding private assets in ETFs due to liquidity challenges, though innovations like tokenization and payment-in-kind provisions are seen as potential solutions. Meanwhile, industry events are focusing on regulatory reforms and increasing retail access to private credit, reflecting broader interest in this asset class's future growth and accessibility.