Today’s private credit opportunity
Key points
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01
A growing opportunity
Private credit is expanding as firms stay private for longer, public markets shift and bank lending evolves. Across the US, EU and UK, private firms generate $40T in revenue — creating a major financing opportunity for private credit.1
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02
Innovation is expanding investor access to private credit
Lower entry points, better liquidity and greater transparency are opening private credit to more investors. It can diversify portfolios, generate income, hedge inflation and provide access to an engine of growth often absent from traditional fixed income.
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03
Expanding access to help people invest better
BlackRock is expanding access to private credit through innovation, acquisitions and greater transparency — creating opportunities for private markets to sit alongside public securities in portfolios, while channeling capital to businesses and communities worldwide.
Introduction: The rapid growth of private markets
Private markets are rapidly expanding, with private equity, private credit and privately held assets in infrastructure and real estate projected to grow from $15T today to $23T by 2029.2 Once largely reserved for institutional investors, private assets are increasingly available to individual investors and retirement portfolios.
Private credit, a $2.1T asset class that we expect to more than double by 2030, is central to financing the middle-market firms that are key drivers of economic growth and job creation.3 For investors, private credit can diversification, income and resilience to portfolios.
The scale of the private
credit opportunity
Private credit is being fueled by investors’ demand for diversification, shifts in public markets, borrowers’ desire for flexibility and an evolution in the bank lending landscape.
Once centered on middle-market firms — which account for a third of US GDP and employ 40 million people — it now also finances larger companies that are staying private for longer.4 The scale is significant: more than 44,000 private firms in the US, EU and UK generate $40T in revenues annually.5 Private credit funds are also arranging jumbo financings for large and even public companies.
Adding private credit to investment portfolios
High minimums and long lockups once made private assets the domain of institutional investors. Today, innovation is lowering barriers with lower entry points, greater liquidity and inclusion in retirement plans.
Private credit can offer steady cash flows, floating-rate exposures and diversification through illiquidity premiums and unique risk profiles. As transparency and liquidity improve, we see portfolios evolving from the classic 60/40 to a 50/30/20 mix – where private assets are a core allocation.
Unlocking private markets for our clients
For nearly four decades, BlackRock has worked to expand market access and innovate for investors. Today, we see private assets as core complements to public securities – filling a central role in modern portfolios.
With our acquisitions of HPS, GIP and Preqin, we are opening private markets to more investors, increasing transparency, and channeling capital to businesses and communities that are at the center of the economy.
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1. S&P Capital IQ, BlackRock, as of August 19, 2025.
2. Preqin data as of Q3 2024, as published in ‘Future of Alternatives 2029’ in June 2025. Our estimate of private markets in 2029 does not include the asset-based finance market. Private equity is inclusive of venture capital. There is no guarantee that any forecasts made will come to pass.
3. BlackRock, Preqin, Cliffwater. Historical data from Preqin and Cliffwater as of March 2025. This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or strategies to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks.
4. JPMorgan Chase, The Middle Matters: Exploring the Diverse Middle Market Business Landscape (2023).
5. S&P Capital IQ, BlackRock, as of August 19, 2025.
This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or strategies to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks.
This document is marketing material: Before investing please read the Prospectus and the PRIIPs KID available on www.blackrock.com/it, which contain a summary of investors’ rights.
Risks
Risks associated with an investment in private credit include, but are not limited to, the following: (i) private credit is speculative and its investments are subject to a risk of total loss, (ii) the performance of the private credit may be volatile, (iii) the general partner of a fund will retain ultimate authority over the fund’s assets and investment decisions, (iv) there may be restrictions on the ability of investors to withdraw capital and on the transferability of investor ownership interests (v) the fees and expenses of a private credit strategy may offset any profits of the strategy, (vi) investing in private credit may involve complex tax structures and delays in distributing important tax information, (vii) Private credit is generally not subject to the same regulatory requirements as mutual funds.
In addition to the above, further risks associated with instruments utilized by private credit include, but are not limited to, the following: i.) Credit & Interest Rate: The two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments. ii.) High-Yield Bonds or Junk Bonds: Investments in non-investment-grade debt securities (“high-yield bonds” or “junk bonds”) may be subject to greater market fluctuations and risk of default or loss of income and principal than securities in higher rating categories. iii) Derivatives: Investing in derivatives entails specific risks that may reduce returns and/or increase volatility. iv) Foreign/International Markets: International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation, and the possibility of substantial volatility due to adverse political, economic or other developments. v) Emerging Markets: The above risks are often heightened for investments in emerging/developing markets or smaller capital markets
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