Private Credit Q3 2025: Preqin Quarterly Update

Private credit fundraising rebounded in Q3 2025, while modest rate cuts and tight public credit spreads support a constructive outlook

• Fundraising momentum returned, with Q3’s total bringing YTD fundraising to $131bn vs $140bn this time last year – evidence that investor interest is firming after three years of slippage

• Private credit defaults eased and US high yield spreads tightened, signaling sustained risk appetite and supportive credit conditions

• Institutional allocations to private credit rose from 2.9% in 2020 to around 4.0% in 2024, with large plans targeting even higher levels, underscoring structural growth in the asset class