Private debt has evolved from a minor niche into a major segment of the global credit market. Two decades ago, this type of lending was seen as an under-the-radar alternative source of corporate funding with negligible volumes; now it is central to many institutional portfolios. Global private-credit assets under management are expected to exceed 2 trillion dollars in 2025. Projections point to 4.5 trillion dollars by 2030, making private credit the fastest growing segment of private markets. This expansion is being driven by strong investor demand, a shift in regulatory frameworks, and a growing preference over traditional bank lending.

After years marked by war, inflation, and rising interest rates, cautious optimism is returning. Understanding how these markets function offers insight into broader economic trends, and recent signals point to a cautious recovery.

Capital is moving to where the need is greatest. Climate change, rapid urbanisation, ageing public systems, and the explosion of digital services are creating pressures that traditional public funding struggles to absorb. Private infrastructure is stepping in to meet this demand, offering solutions that governments find increasingly difficult to deliver.