What is Private Credit?

With a robust supply of asset-based investments, the private credit market has grown to over $5T dollars and is anticipated to be worth nearly $8T by 2027, driven by structural shifts in the lending environment.

Private credit refers to lending to borrowers who do not have access to traditional liquid markets or bank financing. It includes general corporate loans, secured by a company's assets or cash flow, and asset-based loans, secured by specific tangible or intangible assets such as equipment or financial securities.

Why is it necessary?

Support for small and medium-sized businesses: Most businesses globally are small or medium-sized and require smaller loan amounts than those typically available in liquid markets. Private credit provides these essential loans.

Filling the bank lending gap: Post-financial crisis regulations have restricted banks from lending to highly leveraged businesses. Private credit fills this void, especially for privately- or family-owned businesses.

Diversified financing needs: Different businesses have varying financial needs, some requiring specific asset-based loans. Private credit caters to these diverse requirements more flexibily than traditional banks or liquid markets.

This site uses cookies to offer you a better browsing experience. A cookie is a small text file that a website places on your computer or mobile device when you visit the site. It enables the website to remember your actions and preferences, so you do not have to keep re-entering them whenever you come back to or browse this site. Click here for a list of cookies and a description of how they’re used. The cookie-related information is not used to identify you personally. These cookies are not used for any purpose other than those described here.

Nothing in this publication is intended to constitute legal, tax securities or investment advice, nor an opinion regarding the appropriateness of any investment nor a solicitation of any type. This is a publication of Russell Investments Canada Limited and has been prepared solely for information purposes. It is made available on an "as is" basis. Russell Investments Canada Limited does not make any warranty or representation regarding the information.

We will provide our publications in alternative formats, upon request, in a timely manner, depending upon document specifications (e.g. length of document, format required).

Russell Investments is the operating name of a group of companies under common management, including Russell Investments Canada Limited.

Russell Investments is committed to ensuring digital accessibility for people with disabilities. We are continually improving the user experience for everyone, and applying the relevant accessibility standards.

Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates Management, L.P., with a significant minority stake held by funds managed by Reverence Capital Partners, L.P. Certain of Russell Investments' employees and Hamilton Lane Advisors, LLC also hold minority, non-controlling, ownership stakes.

Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the "FTSE RUSSELL" brand.

Products and services described on these websites are intended for Canadian residents only. Information on these sites should not be considered a solicitation to buy or an offer to sell a security to any person.

© Russell Investments Canada Limited 1995-2025. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an ""as is"" basis without warranty.