A vast menu of private credit arrangements now finance nearly every aspect of the real economy.

As traditional lenders retrenched in the wake of the Great Financial Crisis, stricter regulatory requirements and more recently a regional banking crisis, suppliers of private credit have filled the vacuum. Today, private credit—in its myriad forms—is no longer just an intriguing alternative asset class, but arguably a foundational pillar of the financial system.

Our new paper examines the trajectory of this market and its potential to continue delivering attractive risk-adjusted returns for selective investors.