Private credit funds running down their traditional sources of cash are developing new ways to branch out to insurance and retail investors, the next potential drivers of their growth. The need for alternative drivers hit home as a report revealed that the time to raise a traditional fund aimed at institutional investors had reached a record 23 months. According to PitchBook, which published the report last week, that marks the longest stretch since at least 2006. PitchBook’s report excludes flows to evergreen private credit fund which continually raise capital, and have become popular with retail investors. However, a Morningstar report last month showed assets in semi-liquid credit funds have increased by more than a fifth since the end of 2024, to $230 billion. “We are seeing a proliferation in the ways that private credit is delivered to investors,” said John Anderson, a partner at law firm Goodwin. “This diversification may also be contributing to growth in the asset class.”
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