In March 2026, we published “The Private Credit Market: Understanding Its First Real Test,” examining several noteworthy market developments, including collapses driven by alleged fraud, increased redemption pressure at some of the largest funds and growing concerns regarding software-sector concentration and opacity in private credit fund net asset valuations.
This update addresses four themes that have been top of mind for clients since March: (I) how retail private credit continues to evolve; (II) where capital is being reallocated across private credit strategies; (III) what second-quarter 2026 results reveal about the health of corporate lending generally and private credit funds specifically; and (IV) the extent to which prevailing headlines compare with underlying performance data.
The emerging data increasingly suggest a market bifurcation rather than a market-wide deterioration.
