2026 Global Alternatives Survey: The Private Credit View
Key Findings
Defaults Remain on Watch
Despite continued appetite for private credit investments, credit quality has emerged as the top concern among private credit investors. In our survey, rising defaults were identified as the greatest risk to private credit portfolios, ranking ahead of macroeconomic shocks, spread compression, and refinancing pressures. As a result, institutional investors are placing greater emphasis on borrower quality, durable cash flows, and rigorous underwriting standards rather than simply pursuing higher yields. The findings highlight a growing focus on origination discipline and risk management as investors navigate today's private credit market environment.
Capital Shifts to Collateral and Access
LPs largely feel under allocated to private credit, a share that has grown since last year, suggesting continued room for capital deployment. Asset-backed finance sits at the forefront of planned commitments, offering diversified collateral, potentially more predictable cash flows and nearer-term liquidity, while direct lending remains a portfolio anchor. At the same time, GPs see wealth channels and evergreen vehicles as the forces most likely to reshape fund structures, broadening the capital base for the asset class.
Manager Selection Separates Outcomes
Manager selection emerged as the leading challenge for LPs investing in private credit, followed closely by concerns around valuations and liquidity. Investors are paying closer attention to how managers underwrite, value and manage their portfolios, while GPs expect platform convergence and spread compression to intensify competition. Together, these trends suggest performance dispersion matters as much as direction, with allocators seeking managers that pair proven underwriting discipline with specialist expertise and differentiated origination.
