Private credit in the UK: growth, governance and resilience
Understanding the growth and resilience of private credit in the UK
With the Bank of England estimating that $16bn is currently under management in private market funds, private credit has moved from the periphery of financial markets to a central position in the UK economy.
As banks have retreated from certain forms of lending in the years since the global financial crisis, non-bank intermediated capital has stepped in to fill the gap, reshaping how businesses, assets and infrastructure are financed.
As private credit continues to expand in scale and influence, understanding its mechanics and vulnerabilities is no longer optional. The robustness of private credit markets will depend on greater transparency, better data and clearer standards if this hugely valuable part of the financial eco-system is to continue to support economic growth without storing up unintended consequences for the future.
Our report, co-authored with FieldFisher, puts the private credit market in the spotlight and reviews where the market has been and where it's going.
Key takeaways
- Private credit is central in the UK: filling gaps left by banks, it now represents a core part of UK financing, though market complexity is increasing.
- Regulatory scrutiny is rising: authorities are examining data gaps, valuations and links to the broader financial system.
- The market is growing rapidly: competition is intensifying, pushing some lenders into higher‑risk areas.
- Insurer and pension reforms boost liquidity: these reforms are accelerating capital inflows, increasing market activity.
- Governance and verification risks remain high: recent high‑profile failures have exposed weak controls and rising fraud risk.
Explore our Private Credit report
If you have any questions regarding the report, please get in touch with Damian Webb.