Words by Michael Dittenhoefer, Commercial Director
Private credit has emerged as one of the most dynamic corners of global finance. Once a niche allocation, the asset class has grown rapidly over the past decade, with total assets under management recently surpassing $2 trillion worldwide. Its appeal is clear: yield generation in a low-rate environment, diversification benefits, and the ability to provide financing solutions where banks have stepped back. Yet with this growth comes new pressures and new opportunities.
By 2026, investors will expect more from their private credit managers. Transparency, faster reporting cycles, and stronger risk controls are set to become non-negotiables. Meeting these demands will not be possible without technology. Automated compliance frameworks, AI-powered data analysis, and scalable modelling platforms are no longer “nice-to-haves”. They are becoming the operational infrastructure on which institutional trust is built. Managers who make these investments now will not only enhance efficiency but also build credibility with increasingly sophisticated investors.
At the same time, macro-level developments could reshape the investor base for private credit altogether. On 7 August 2025, President Trump signed an executive order entitled “Democratizing Access to Alternative Assets for 401(k) Investors.” The measure signals a political willingness to expand retirement plan allocations beyond traditional stocks and bonds into alternative strategies such as private credit.
If implemented, the order could unlock vast pools of retirement capital and further accelerate growth in the sector. For private credit managers, the implications are twofold. First, scale will become even more critical as new flows demand robust operational frameworks. Second, scrutiny will increase. Retirement savers, regulators, and policymakers alike will expect higher levels of governance and reporting rigor than many managers currently provide.
Taken together, these forces point to a decisive turning point for private credit. The asset class is no longer an emerging story. It is a maturing market segment that must prove it can meet institutional-grade expectations while continuing to deliver strong returns.
The winners in this environment will be those who treat technology not as a cost line, but as a growth catalyst. Firms that can leverage digital tools to streamline operations, surface actionable insights, and demonstrate accountability will be best placed to capture investor trust and capital inflows.
In short, private credit’s future leadership will not be defined solely by access to deal flow or investment acumen, but by the ability to combine these strengths with a technology-enabled operating model. The next wave of growth, fueled by retirement capital and investor scrutiny, will reward those prepared to lead with both innovation and discipline.
