Marketplace All-in-One A private credit market boom
Feb 26, 2026
Mitchell Hartman, a data-focused reporter who previews PPI and inflation trends. Daniel Ackerman, a business reporter tracking the rise of private credit since 2008. They discuss the fivefold growth of private credit, how postcrisis rules pushed lending outside banks, risks tied to loans for software and AI startups, and what wholesale inflation signals mean for markets.
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Private Credit Explosion Since 2008
- Private credit has grown about fivefold since 2008 to nearly $2 trillion globally, driven by banks pulling back after the financial crisis.
- Non-bank lenders fill gaps left by tighter bank rules, offering higher returns but taking on riskier loans, especially to smaller firms.
Why Private Lenders Fill The Gap
- Private credit funds stepped in after banks tightened lending post-2008, making loans to firms that couldn't access bonds or bank credit.
- That lending is often higher-yield and riskier, with investors like endowments seeking diversification.
Private Credit Concentration In Software
- A substantial share of private credit has flowed into software firms, which are often too small for bond markets or bank requirements.
- Fears that AI could reduce software demand have pressured private credit managers' stocks recently.