Private credit market shows resilience with $208 billion raised in early 2026

The private credit market showed resilience in the first half of 2026, with CVC Credit reporting that the sector raised more than $208 billion. Despite concerns regarding credit quality and potential AI disruption in software, fundamentals remain sound. Senior direct lending saw a significant increase, accounting for 60 percent of capital raised compared to 42 percent in 2025.

Underwriters have adopted a more cautious approach, particularly regarding technology assets. In Europe, technology's share of deal activity dropped from 29 percent in 2025 to 22 percent in the first half of 2026, as investors pivoted toward hard assets like transportation.

In the business development company (BDC) sector, Barings BDC recently issued $350 million in debt at a 6.5 percent interest rate to fund new loans. This follows a period of investor concern regarding credit quality. Other major players, including Blue Owl Capital, Main Street Capital, and Ares Capital Corporation, continue to maintain high average interest rates on their loan portfolios, ranging from approximately 9.4 percent to 10.3 percent.