New capital raised by private credit strategies targeting wealthy individuals declined sharply in the first quarter of 2026, dropping 45% compared with the same period a year earlier, according to a report by Reuters citing data released by specialist investment bank RA Stanger.
The figures suggest a cooling in appetite for parts of the private credit market that have expanded rapidly in recent years. RA Stanger pointed to growing concerns around the impact of artificial intelligence on software and technology-focused borrowers, many of which had previously been financed by private credit and private equity managers during the low interest rate era. At the same time, scrutiny has intensified around lending discipline and valuation transparency across the sector.
Within the retail-oriented segment, non-traded business development companies (BDCs)—which typically combine equity capital with leverage to provide loans to private businesses—raised $8.9bn in the first quarter. This compares with $16.3bn raised in the same period in 2025.
Kevin Gannon, chairman and chief executive of RA Stanger, said the trend indicates a broader shift in capital allocation away from private credit. He described the movement of funds out of the asset class as no longer emerging but now clearly established.
While private credit inflows slowed, investors showed greater interest in strategies tied to tangible assets. Real estate-focused funds saw fundraising increase by 26% year-on-year, while infrastructure strategies recorded a 14% rise over the same period.
RA Stanger tracks 23 publicly registered BDCs alongside 106 privately offered structures, which typically require higher minimum investment thresholds. Publicly listed BDCs are not included in its analysis.
The data comes amid a broader push by alternative asset managers to expand access to private markets for wealthy individuals. In the US, policymakers have also explored widening the role of illiquid assets within retirement savings frameworks.
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