Private Credit AUM Hits $1.7T, Tripling by 2028
Private credit AUM reached $1.7 trillion in 2025, expected to triple by 2028.
Why it matters: The rapid expansion of private credit introduces compliance challenges and regulatory risks, requiring robust legal oversight to manage potential financial stability concerns.
- Private credit AUM stood at $1.7 trillion in late 2025.
- Projected to reach $2.8–3.5 trillion by 2028.
- Share in global borrowing grew at a 14% CAGR from 2014-2025.
- Legal firms are expanding services to navigate increased demand and compliance issues.
Private credit, an alternative to traditional bank loans, is reshaping corporate lending rapidly. By the end of 2025, private credit's assets under management (AUM) reached approximately $1.7 trillion. Expectations are that this figure could triple, hitting between $2.8 trillion and $3.5 trillion by 2028, according to S&P Global Market Intelligence.
From 2014 to 2025, private credit's share of global corporate borrowing expanded at a compound annual growth rate (CAGR) of 14%. Despite a 22% decline in private debt fundraising in 2024, the sector accounts for 9% of global corporate borrowing. This growth is linked to strategies like leveraged buyouts (LBOs), with private debt funds now financing 77% of global LBOs.
In the U.S., private credit markets exceeded $1.5 trillion in Q1 2025, highlighting a shift away from traditional bank loans. In response, major law firms, including Proskauer Rose and Kirkland & Ellis, are expanding their services to meet increased demand for legal expertise in this area.
However, this rapid growth is fraught with regulatory challenges. The Brookings Institution has highlighted concerns over the opacity of private credit markets contributing to potential financial stability risks. Entities like the IMF and the Bank of England share these concerns, underscoring the need for legal professionals to ensure compliance and manage these complex risks effectively.
By the numbers:
- $1.7 trillion — Private credit AUM by the end of 2025.
- 77% — Proportion of global LBOs financed by private debt funds.
Yes, but: The rapid growth of private credit also introduces significant risks due to market opacity, posing potential financial stability challenges.