Percent’s 2025 Private Credit Forecast: How the Asset Class will Dominate the Financial Landscape

Published 12 hours ago via Business Wire

Report details how private credit will continue to remain a resilient, high-performing asset class amidst global economic shifts and market volatility

Percent, the platform powering the modern private credit marketplace, released their 2025 Private Credit Outlook. This annual report highlights how private credit is one of the most resilient and dynamic asset classes in global finance, nearing $2 trillion in market size. Amidst macroeconomic shifts seen in 2024 – from the Federal Reserve’s cautious rate cuts to a contentious U.S. presidential election and heightened, evolving geopolitical tensions – private credit has demonstrated unparalleled adaptability, resilience and strength, with Percent seeing its gross returns, after losses, hold steady at 14.6%. This steadfast performance has positioned the asset class for accelerated growth in 2025.

“Last year demonstrated how private credit keeps delivering, even when the market throws curveballs,” said Nelson Chu, founder and CEO of Percent. “As we enter 2025, banks’ entry into private credit signals the asset class’s resilience and appeal. Yet, the lower middle market remains a largely untapped frontier, where financing gaps left by traditional lenders are most pronounced. This segment offers a unique opportunity to diversify portfolios, provide inflation protection, and unlock value in ways that larger players can’t replicate. It’s here, in this underserved space, where private credit will not just hold its ground, but thrive.”

According to Percent’s 2025 Private Credit Outlook Report, Key Trends Shaping Private Credit will Include:

  • Asset-Based Financing Expansion: Asset-based financing, such as merchant cash advances, trade receivables and equipment loans, is poised for significant growth, offering enhanced collateral protection for investors and more favorable financing terms for borrowers.
  • Continued Direct Lending Growth: Direct lending, including senior debt, mezzanine financing and unitranche loans, will remain a key driver as institutional investors recommend an increase in allocations to alternatives.
  • Fed Policy Easing: Continued rate cuts by the Federal Reserve are expected to bolster private credit’s appeal, as investors shift from public bonds to higher-yielding private credit assets that provide a built-in hedge against inflation and market rate volatility.
  • Increased Private Credit Diversification: Investors will seek broader segmentation across deal types, company sizes and geographies to optimize risk-adjusted returns in both developed and emerging markets.
  • Advancements in Technology and Transparency: Digital platforms and data-driven underwriting will continue to enhance transparency, efficiency and access to high-quality deals.

Focused on the middle-market of private credit and specializing in the sub- $5M deals, Percent has helped private credit scale, providing accredited investors access to previously unattainable opportunities. With expanded data-driven insights, the company has changed perceptions of the asset class from illiquid, opaque and inaccessible to a viable investment option. Since its inception, Percent has onboarded more than 100 borrowers, over 20 underwriters, and nearly 45,000 investors, recently recording 16 consecutive months of net AUM growth. Following this tremendous growth, the company will focus on expanding asset-based financing offerings, introducing innovative investor resources, and driving further diversification across private credit opportunities in 2025.

For more information on the private credit trends witnessed in 2024 and what is on the horizon in 2025, please read Percent’s 2025 Private Credit Outlook here.

About Percent

Percent is unlocking private credit and providing unparalleled access through its modern private credit market, empowering investors, borrowers and underwriters with innovative technology to increase the speed and frequency of transactions at a fraction of the cost. The company’s core infrastructure delivers public market efficiencies to the multi-trillion-dollar analog private credit market by powering the sourcing, structuring, syndication, surveillance and servicing of private credit transactions from beginning to end. Founded in 2018, Percent’s platform is becoming the market standard for asset-backed and corporate lending, powering over $1.5 billion in total transaction volume across retail and institutional markets. For additional information, please visit www.percent.com and follow the company on Facebook, Instagram, LinkedIn and Twitter.

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