Private credit market set for significant growth in 2025.

Macquarie Capital has predicted that the private credit market is set for significant growth in 2025, despite the slower pace of interest rate reductions, persistent valuation gaps and ongoing geopolitical and macroeconomic uncertainty.

The firm noted that global M&A is recovering from a 10-year low, global GDP has outperformed expectations, and central banks have begun easing monetary policy. While activity levels remain well below the long-term average, last year deal volumes grew seven per cent, according to Preqin data, while values increased by 15 per cent to $3.5tn (£2.72tn), bringing the market closer to pre-pandemic levels.

“There was a welcome uptick in global M&A activity towards the end of last year, reflecting growing confidence among dealmakers,” said Bill Eckmann, head of principal finance and private credit, Americas, at Macquarie Capital.

Source: Alternativecreditinvestor