Core Concepts: The Evolution of Private Credit and What It Means for Banks

Historically a niche industry that served distressed borrowers with creative structures, private credit has evolved into a segment that also serves borrowers with products resembling traditional bank loans. This new focus has helped private credit to grow exponentially.  The private credit market is widely estimated to have hit the $2 trillion mark in 2025 and is expected to continue its rapid rise. With the Federal Reserve Bank of Boston expecting a $3.5 trillion total by 2028, private cre…