{
  "id": 14925367,
  "title": "Private credit fundraising hits record $129bn despite 28% decline in lending",
  "url": "https://urgent.news/2026/10/16/private-credit-fundraising-hits-record-129bn-despite-28-decline-in",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-16T09:34:39.000Z",
  "source": {
    "name": "Private Equity Wire",
    "slug": "private-equity-wire",
    "url": "https://www.privateequitywire.co.uk/private-credit-fundraising-hits-record-129bn-despite-28-decline-in-lending/"
  },
  "original_language": "en",
  "account": "In the first nine months of 2026, private credit fundraising reached an unprecedented $129.15 billion, despite a 28% decline in lending activity, according to a report by Reuters. This represents a 35% year-on-year increase and the highest nine-month total recorded by Preqin since its data series began in 2016. However, direct lending volumes dropped 28% year-on-year to $49.77 billion in the third quarter, creating a significant gap between the capital raised and new lending opportunities. This imbalance is putting pressure on private credit managers, potentially leading to more intense competition over loan pricing, leverage levels, and covenant protections.\n\nSunaina Sinha Haldea, global head of private capital advisory at Raymond James, suggested that the discrepancy is due to a cyclical shortage of attractive transaction pricing and heightened competition from syndicated loan markets, rather than a decline in borrower demand. The shift is also evident in refinancing activity. About $16.39 billion of direct lending loans were refinanced through syndicated markets in the third quarter, compared to $2.60 billion of syndicated loans moving into direct lending. This trend contrasts with 2022 and 2023, when volatile public lending markets prompted borrowers to seek funding from private credit managers, who offered greater flexibility and execution certainty.\n\nThis trend could result in private credit portfolios containing a higher proportion of borrowers who cannot access syndicated financing. While larger companies may still prefer direct lenders due to their specific funding needs, smaller enterprises might be more inclined to rely on private credit managers. The disparity between fundraising and deployment raises concerns about whether managers will continue to uphold stringent underwriting standards or accept lower returns to invest accumulated capital.",
  "summary": "Direct lending funds raised a record $129.15bn during the first nine months of 2026, even as lending activity slowed and borrowers increasingly refinanced through syndicated loan markets, according to a report by Reuters.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}