Private Credit Fees Tick Higher
Competition for capital is easing at the top of the market, while prices tick higher. What investors really pay is more complicated. The post Private Credit Fees Tick Higher appeared first on Global Finance Magazine .
In September 2026, Private Credit fees began to rise again after reaching historic lows during the post-pandemic period. According to Preqin's latest data, direct-lending funds raised in 2025 charged a mean management fee of 1.42%, matching the long-term average of 2005-2025. This marks a reversal from the low fees (1% to 1.32%) that prevailed during the pandemic.
However, the true cost to investors is more complex, with factors such as performance-based pricing and concentration among top managers influencing the actual expenses. Large pension funds like LACERA warn that fee structures can be misleading, and some investors view the growing concentration of capital among top managers as a warning sign of industry shakeout.
While headline fees have increased, it remains unclear if investor expenses are truly rising, as total blended costs (including management fees, incentive fees, and expenses) are sometimes flat or lower.
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