Private Credit Has Lent $560 Billion to US Businesses Since 2023, New MFA Report Shows, as Asset Class Cements Itself as Mainstream Corporate Lending Rival
A new report by the Managed Funds Association (MFA) — the US trade body for alternative investment managers — reveals that private credit (direct lending by non-bank funds, as opposed to syndicated bank loans) has deployed $560 billion to US businesses since 2023. The data, released on 1 June 2026, establishes the scale at which private credit has become a structurally significant component of corporate finance rather than a niche alternative to the broadly syndicated loan market. Private credit funds typically lend to mid-market and sponsor-backed companies on a bilateral or club basis, often at floating rates and with more flexible covenant structures than public bond markets. The $560 billion figure covers a roughly two-and-a-half-year window and reflects the asset class's acceleration following the syndicated loan market dislocation of 2022–23 when rising rates constrained bank appetite for leveraged lending. The MFA report positions private credit as a net positive for business lending depth, though the asset class continues to attract scrutiny from bodies including the Financial Stability Board (FSB) and IOSCO (the International Organization of Securities Commissions) over systemic risk and disclosure standards.
Why this matters
A $560 billion deployment figure over roughly 30 months confirms that private credit is no longer a niche product — it is a principal financing channel for sponsor-backed transactions globally, including in the UK and European mid-market where London-based funds are highly active. The scale creates sustained demand for leveraged finance legal work: facility agreement drafting, security package reviews, intercreditor (agreement between competing creditors on priority and enforcement rights) negotiations, and legal opinions on debt capacity. The 'why now' trigger is the combination of banks' continued caution on leveraged lending post-2022 and the flood of institutional capital into private credit strategies. Regulatory scrutiny from the FSB and IOSCO signals that enhanced disclosure requirements for private credit funds are likely to follow — a regulatory compliance workstream that will grow.
On the Ground
A trainee on a private credit transaction would assist with CP (conditions precedent) checklist management, reviewing security document schedules to ensure all required charges over assets have been created, and coordinating legal opinion requests from local counsel in the jurisdictions where the borrower operates.
Interview prep
Soundbite
Private credit's $560bn deployment since 2023 means leveraged finance teams at City firms are now as likely to close deals with direct lenders as with bank syndicates.
Question you might get
“What are the key legal differences between a syndicated leveraged loan and a private credit direct lending facility, and why might a PE-backed borrower prefer one structure over the other?”
Full answer
The MFA's report shows private credit has lent $560 billion to US businesses since 2023, cementing the asset class as a mainstream rival to traditional syndicated lending. For law firms, this means bilateral and club-deal leveraged finance mandates — where funds rather than bank syndicates provide debt — have become a core source of transactional revenue. The structural shift matters because private credit deals typically involve more bespoke documentation, heavier covenant negotiation, and tighter lender control packages than public bond markets, generating more legal work per transaction. The FSB and IOSCO's ongoing scrutiny signals that a regulatory reckoning on private credit disclosure standards is approaching, which will in turn drive compliance advisory mandates for fund managers. This trend strongly favours firms with integrated funds, leveraged finance, and regulatory practices.
My notes
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