Key Takeaways
- • Private debt fundraising proved resilient in 2025, with investors continuing to favor floating-rate exposure in a higher-for-longer rate environment, according to PitchBook's 2025 Annual Global Private Debt Report.
- • Capital formation is concentrating among established platforms, with 93.1% of 2025 fundraising directed to managers raising their fourth fund or beyond.
- • Global private debt AUM now exceeds $2.5 trillion when capital from private wealth and insurance investors is included.
- • Underwriting strengthened alongside the rebound in private equity dealmaking, producing a modest decline in dry powder and a more balanced market.
- • PitchBook cautions that mounting uncertainty around the asset class may temper growth in the coming year.
Summary
Private debt fundraising remained resilient through 2025, according to PitchBook's 2025 Annual Global Private Debt Report. Investors continued to favor floating-rate exposure in a higher-for-longer rate environment and viewed the asset class as attractive on a risk-adjusted basis relative to public fixed income.
Capital formation, however, is increasingly concentrated among established platforms. The report finds that 93.1% of 2025 fundraising was directed to managers raising their fourth fund or beyond, leaving emerging managers with a markedly smaller share of new commitments.
Including capital from private wealth and insurance investors, global private debt assets under management now exceed $2.5 trillion. PitchBook notes, however, that mounting uncertainty around the asset class may temper its growth in the coming year.
Underwriting activity strengthened alongside the rebound in private equity dealmaking, driving faster capital deployment and a modest decline in dry powder. PitchBook characterizes the drawdown as evidence of a more balanced market, with deployment beginning to realign with fundraising after a period in which capital raised outpaced transaction activity.
The full report also covers US and European market statistics, private debt fund performance, leveraged loan conditions, and leveraged buyout and take-private activity. A spotlight section examines a software sector slump that has weighed on leveraged loans, which PitchBook describes as a decade-worst start to the year.
Capital formation, however, is increasingly concentrated among established platforms. The report finds that 93.1% of 2025 fundraising was directed to managers raising their fourth fund or beyond, leaving emerging managers with a markedly smaller share of new commitments.
Including capital from private wealth and insurance investors, global private debt assets under management now exceed $2.5 trillion. PitchBook notes, however, that mounting uncertainty around the asset class may temper its growth in the coming year.
Underwriting activity strengthened alongside the rebound in private equity dealmaking, driving faster capital deployment and a modest decline in dry powder. PitchBook characterizes the drawdown as evidence of a more balanced market, with deployment beginning to realign with fundraising after a period in which capital raised outpaced transaction activity.
The full report also covers US and European market statistics, private debt fund performance, leveraged loan conditions, and leveraged buyout and take-private activity. A spotlight section examines a software sector slump that has weighed on leveraged loans, which PitchBook describes as a decade-worst start to the year.
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