US Banks’ Private Credit Exposure Grows but Risks Remain Limited

FR icon
Content hub / Article / Fitch Ratings / US Banks’ Private Credit Exposure Grows but Risks Remain Limited

U.S. Banks’ Direct Exposure to Private Credit Growing; Poses Limited Risks for Now

Click here to learn more.

Private credit has expanded rapidly, but sizing the market is challenging given limited transparency. In its ‘Private Debt 2025’ report, Preqin sized the global private credit market at $1.6 trillion in AUM at year-end 2024 and projects that it will increase to $2.7 trillion by 2029.

From a geographic perspective, North America (N.A.) continues to dominate, representing 62.1% of total private debt at YE23, according to Preqin, but Asia-Pacific (APAC) is expanding at a faster pace, albeit from a much smaller base. APAC expanded at an 18.8% CAGR from 2018-2023, followed by N.A. at 14.3%, the rest of the world (ROW) at 14.0% and Europe at 12.1%.

Contact Brad Hamner
Business development companies and the rise of balance sheet financing vehicles

Podcast

Business development companies and the rise of balance sheet financing vehicles

Fitch's Deb Murnin and Chelsea Richardson discuss the growing use of off-balance-sheet JVs and finance companies among BDCs, exploring the drivers, leverage impacts, portfolio risk profiles, and potential rating implications for Fitch-rated BDCs.
Listen
Private Debt Investor New York Forum

September 15-16, Hudson Yards, New York

Private Debt Investor New York Forum

Bringing together the investors, managers and advisers shaping the next phase of the market — 200+ allocators and $10.6 trillion of LP capital expected. Benchmark strategies, hear from leading LPs, and cut through market noise over two unmissable days.
Learn more
US Private Credit League Tables H1'26

Report

US Private Credit League Tables H1'26

The definitive rankings covering private credit activity in H1'26.
Download
PitchBook's Q2 2026 US PE Breakdown

Report

PitchBook's Q2 2026 US PE Breakdown

Software freezes and energy powers on as US PE deal value falls 38% in Q2 2026.
Download
Making sense of private credit defaults

Webinar

Making sense of private credit defaults

What does private credit default data really tell us? Join our exclusive webinar featuring experts from KBRA, Moody's, Fitch Ratings, and S&P Global to find out.
Register

Latest news

    High-Yield Bond Statistics

    Read More

    Software, consumer-related direct lending deals fell in H1'26

    The software and technology sector, the second-most-active sector in 2025 at 17% of total deal activity, slid to fifth place in the first half of 2026.

    Read More

    Unconquered Territory

    With most of the map still unexplored, there’s room for a sequel.

    Read More