Private credit gains ground among top private equity managers

Private credit is fundamentally reshaping the asset allocation strategy of major alternative investment managers, with the three largest players—Blackstone, Apollo Global Management, and Ares Management—each reporting significant expansion in credit-focused strategies at the expense of traditional private equity.

According to Preqin data cited in the S&P Global report, global private credit AUM is expected to nearly double over the next five years, growing from an estimated $2.280 trillion in 2025 to $4.504 trillion by 2030. This projection reflects both organic growth within existing funds and substantial capital reallocation toward the asset class.

Blackstone exemplifies this trend. The firm's credit and insurance segment grew 18% in 2024 to $375.50 billion, extending its gains into 2025 with Q3 AUM reaching $432.30 billion. This segment now comprises 33% of Blackstone's total AUM, up from 31% the prior year. Notably, private equity—historically the flagship strategy—grew to only 31% of total AUM in 2024 from 29% in 2023, indicating credit's faster expansion. During the firm's October 23 third-quarter earnings call, Blackstone President and COO Jonathan Gray emphasized the breadth of private credit's applicability, stating that "private credit markets are expanding from their origins in non-investment-grade corporate credit and direct lending to become a key mechanism for financing the real economy, including commercial finance, consumer and residential finance, fund finance and of course, infrastructure."

Apollo Global Management shows even more dramatic portfolio concentration in private credit. As of September 30, 2025, the firm reported private credit AUM of $723 billion, with the asset class representing 82% of total AUM compared with 79% the prior year. Private credit grew 19% year-over-year in 2024 to $616 billion, while private equity assets remained flat at $135 billion and contracted as a percentage of total portfolio from 21% to 18%.

Ares Management similarly demonstrates robust credit momentum, with Q3 2025 private credit AUM of $391.50 billion—already surpassing the full-year 2024 total of $348.80 billion. The 2024 figure represented 22% year-over-year growth from $284.80 billion in 2023. Private credit comprised 72% of Ares' total assets in 2024, up from 68% in 2023, while private equity declined from $39.10 billion to $24 billion.

This convergence across tier-one alternative managers signals sustained institutional capital flows toward private credit structures, driven by yield requirements, portfolio diversification, and the asset class's expanding application across real economy financing.