Private Credit Market Surges to $1.54 Trillion

The Federal Reserve has released new data on private credit in the US economy, providing a clearer picture of its role and growth. The data shows that private debt funds have accounted for 58% of the $1.33 trillion increase in the market over the past decade.

Private credit loans now make up 7.9% of debt financing for nonfinancial corporate businesses, while bank lending has been declining. The US private credit market measures $1.54 trillion, with a growth rate of 7.4 times over the past decade.

The data also reveals that investment in private debt funds totals $649.5 billion, with retirement capital supplying the largest share of capital. State and local government defined benefit plans hold $186.0 billion (28.6%) and private defined benefit plans $88.7 billion (13.7%), together making up 42.3% of the total.