At Reuters, Patturaja Murugaboopathy reports that lenders are reducing new loan issuance in private credit, writing:
June 5 (Reuters) – Private credit’s rapid expansion is losing momentum, with U.S.-focused direct lending issuance slowing in recent months and fundraising still below its recent peak, industry data shows.
PitchBook data indicates new loan issuance by private credit lenders fell to $44.76 billion in the three months ended May 2026, down about 40% from $74.56 billion in the first quarter.
Issuance to private equity-backed borrowers dropped nearly 37% over the same period to $28.5 billion, while direct lending volume tied to leveraged buyouts fell about 34% to $15.15 billion.
The decline suggests the industry is entering a more cautious phase, as managers contend with softer fundraising, elevated redemption requests, closer scrutiny of loan quality and renewed competition from cheaper syndicated loan markets.
Action Line: Keep a close eye on private credit and equity, which could show up in your 401(k) at any time, and may be there already. There’s nothing inherently wrong about either form of funding for businesses, but with so many institutional investors looking for an exit, you don’t want to be left holding the bag on investments no one else wants. Click here to subscribe to my free monthly Survive & Thrive letter. Read more in my series Private Equity Is the Next Big Thing Coming for YOU.
