Private credit market experiences rapid global growth

The private credit sector is emerging as one of the fastest-growing investment segments globally. Assets under management in this sector have surged from approximately $300–$400 billion around 2010 to over $2 trillion today. Projections from institutions such as Morgan Stanley and Preqin suggest the market could reach between $3.5 trillion and $5 trillion by 2030.

Investors are increasingly turning to private credit to achieve greater diversification and more stable sources of yield. Unlike traditional assets where returns often depend on price appreciation, private credit yields primarily stem from loan repayments. This segment offers various instruments, including corporate bonds, subordinated bonds, and securitized loans.

In Central Europe, platforms like Bondster are facilitating access to this market for both institutional and retail investors. These models often involve connecting investors with licensed non-bank lenders, frequently using real estate as collateral to secure the loans.