Private credit lent $560 billion to US businesses since 2023, MFA report shows

• Private credit lending peaked at $238.7 billion in 2025, up from $163.6 billion in 2023, with California, Illinois, and Texas receiving the largest shares
• Institutional allocations to hedge funds grew from $1.43 trillion in 2023 to $1.56 trillion in 2025, driven by pensions, endowments, and non-profit foundations seeking long-term stable returns
• The MFA emphasized that regulators should foster frameworks supporting alternative asset managers' contributions to the economy as the industry rapidly expands

Private Credit Provides $560B to U.S. Businesses, MFA Report Shows

Private credit funds delivered nearly $560 billion in new loans to U.S. businesses between 2023-2025, contributing to the creation of over 6.5 million jobs, according to a Managed Funds Association (MFA) report.

Key Figures:

• $560 billion in total private credit loans (2023-2025)
• 2023: $163.6 billion
• 2024: $157.6 billion
• 2025: $238.7 billion (significant acceleration)
• $897 billion in estimated economic activity generated
• California, Illinois, and Texas received the largest share of lending

Market Context:

Private credit firms have filled the financing gap left by traditional lenders, who retrenched from riskier loans due to stricter regulations. This shift highlights the growing importance of alternative asset managers in the U.S. economy, with the sector expanding rapidly over the past decade.

Institutional Investment Growth:

Hedge fund allocations by pensions, endowments, and non-profit foundations reached approximately $1.6 trillion, seeking diversification and stable long-term returns:

• 2023: $1.43 trillion
• 2024: $1.44 trillion
• 2025: $1.56 trillion

Pensions lead with $940 billion invested, while non-profit foundations hold $510 billion. New York, California, and Texas dominate institutional allocations.

Industry Implications:

MFA CEO Bryan Corbett emphasized the sector's economic contribution and called for regulatory frameworks that support continued growth. The data, compiled from BlackRock's Preqin and federal datasets, underscores private credit's critical role in business financing and job creation as traditional banking continues to face regulatory constraints.