ENPRIVATE CREDIT, MIDDLE-MARKET LENDING & INVESTMENT RISK · NOVEMBER 11, 2026
Federal Reserve Estimates U.S. Private-Credit Vehicles Hold $1.9 Trillion
New Federal Reserve research estimates that U.S.-domiciled private-credit vehicles held approximately $1.9 trillion in assets at the end of 2025, with material differences in asset mix, leverage, liquidity, and investor base across vehicle types.
What the Federal Reserve researchers published
Source publication date: November 9, 2026. A Federal Reserve FEDS Note examines the institutional structure and aggregate balance sheets of U.S.-domiciled private-credit vehicles using newly published Financial Accounts statistics. The authors define the measured market around privately negotiated debt financed primarily through nonbank investment vehicles. The research is descriptive and does not endorse a particular lender, fund, loan, or investment.
- 01Assets grew eightfold since 2012
- 02Vehicle structures differ materially
- 03Terms and liquidity require specific diligence
Estimated assets reached approximately $1.9 trillion
The note estimates that the measured vehicles held about $1.9 trillion in assets at the end of 2025, up from roughly $240 billion in 2012. Private debt funds accounted for about $940 billion, business development companies for $570 billion, interval and tender-offer funds for $290 billion, and middle-market collateralized loan obligations for $50 billion. Total assets increased 21% from 2024 to 2025, according to the analysis.
Structure, leverage, and liquidity differ across vehicles
The note reports that private-credit loans represented different shares of each vehicle’s assets and that average leverage varied materially. It cites debt-to-equity of roughly 1 for BDCs, about 0.25 for private debt funds, and about 0.05 for interval and tender-offer funds. Redemption rights and investor bases also differ. Aggregate averages can conceal higher-leverage outliers, portfolio concentration, valuation practices, liquidity constraints, and transaction-specific risk.
Practical borrower and investor takeaway
Borrowers should compare total cost, benchmark, spread, original-issue discount, fees, maturity, amortization, prepayment, covenants, reporting, collateral, control rights, equity participation, and certainty of execution across bank and private-credit proposals. Investors should examine vehicle leverage, liquidity terms, valuation, manager incentives, portfolio concentration, seniority, and financing sources. In either role, underwrite the specific structure and downside exit rather than relying on market size or the private-credit label.
Borrowers and investors should evaluate the specific lender or vehicle, including structure, leverage, liquidity, collateral, covenants, pricing, control rights, and exit risk, rather than treating private credit as one uniform market.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.