# Market Share & Growth of Private Credit

#### Market Share of Private Credit

<figure><img src="/files/HAIguA9n17tmfgpi34UX" alt=""><figcaption><p>Source: <a href="https://www.investmentcouncil.org/wp-content/uploads/2024/07/FINAL-1Q24-Private-Credit-Trends.pdf">https://www.investmentcouncil.org/wp-content/uploads/2024/07/FINAL-1Q24-Private-Credit-Trends.pdf</a></p></figcaption></figure>

#### Scope of Private Credit

<figure><img src="/files/2OjTzNwrxPXV5z7hTFNx" alt=""><figcaption><p>Source: <a href="https://www.mckinsey.com/industries/private-capital/our-insights/mckinseys-private-markets-annual-review#/">https://www.mckinsey.com/industries/private-capital/our-insights/mckinseys-private-markets-annual-review#/</a></p></figcaption></figure>

The chart showcases the steady growth in global private debt fundraising by strategy from 2011 to 2022, highlighting a diverse range of strategies such as direct lending, special situations, mezzanine, distressed debt, and venture debt. Venture debt, in particular, showed impressive growth, with a notable compound annual growth rate (CAGR) of 27.4% from 2018 to 2023, and an astounding 127.1% growth from 2022 to 2023. Private debt is the 3rd largest asset class and the least volatile, offering investors a stable return profile compared to more traditional and fluctuating asset classes like equities or public debt.

#### Growth in Private Debt

<figure><img src="/files/pJLSbylf06M0Dmxcwpnd" alt=""><figcaption><p>Source: <a href="https://www.weforum.org/agenda/2024/03/as-private-market-investors-adapt-to-higher-interest-rates-here-are-5-financing-trends-to-expect-in-2024/">https://www.weforum.org/agenda/2024/03/as-private-market-investors-adapt-to-higher-interest-rates-here-are-5-financing-trends-to-expect-in-2024/</a></p></figcaption></figure>

The graph shows the steady growth of global private debt assets under management (AUM) from 2008 to March 2023, reaching $1.61 trillion. This expansion highlights the increasing global demand for private debt investments, with capital flowing into both U.S. and international markets, making private debt a key part of diversified investment portfolios.


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