Private credit funds lent $560B to US businesses in three years

According to a report from the Managed Funds Association, U.S. businesses have received nearly $560 billion from private credit funds in the last three years. This lending has spurred approximately $897 billion in economic activity and contributed to the creation of over 6.5 million jobs. The study emphasizes the increasing significance of private credit in supporting American companies, especially as traditional banking has become more restrictive. Commissioned by the MFA, which advocates for the alternative asset management sector, the report arrives at a time of heightened regulatory focus on the rapidly growing private credit market since the 2008 financial crisis. While critics caution about possible systemic risks linked to these loans' lack of transparency, supporters claim they offer vital funding to businesses often ignored by banks.