Back to View all
Chart of the week

Private firms represent a dominant share of the loan market

Private firms account for 77% of issuers in the leveraged loan market today, highlighting the larger shift toward private markets.

Subscribe to the Chart of the week newsletter
March 21, 2025 | 2 minute read

Private vs. public company share of loan market

Source: J.P. Morgan, as of February 28, 2025.

  • Since 2014, the private credit market has grown from $217 billion to $1.14 trillion alongside the private equity market. Today, private credit finances more than 80% of U.S. private equity buyouts.1-2
  • Private credit has become the venue of choice for corporate borrowers. Private firms now account for 77% of the 1,200-plus issuers in the leveraged loan market—up from 59% in 2015, as the chart shows.3
  • These trends have been driven by multiple factors, including a bank pullback from non-core lending activities, investor demand for private credit’s potential yield premium and borrowers’ preference for the certainty of execution, more flexible terms and strong lender-borrower relationships that many private lenders offer.
  • Private lenders remain optimistic about the opportunity set in 2025, despite an uncertain start to the year, while demand for private credit remains strong among individual and institutional investors.

  • Preqin, as of Q4 2024.

  • Pitchbook as of Q4 2024.

  • J.P. Morgan as of February 28, 2025.

The chart of the week and any accompanying data is for informational purposes only and shall not be considered an investment recommendation or promotion of FS Investments or any FS Investments fund. The chart of the week is subject to change at any time based on market or other conditions, and FS Investments and FS Investment Solutions, LLC disclaim any responsibility to update such market commentary. The chart of the week should not be relied on as investment advice, and because investment decisions for the FS Investments funds are based on numerous factors, may not be relied on as an indication of the investment intent of any FS Investments fund. None of FS Investments, its funds, FS Investment Solutions, LLC or their respective affiliates can be held responsible for any direct or incidental loss incurred as a result of any reliance on the chart of the week or other opinions expressed therein. Any discussion of past performance should not be used as an indicator of future results.

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.

All investing is subject to risk, including the possible loss of the money you invest.

Print this page Email this page

Related Insights

Chart of the week

Private credit yield premium hits a four-year high

Private credit has traditionally offered a yield premium over public credit markets. It has widened meaningfully today. Spreads tell a similar story.

Chart of the week

Middle market optimism reaches new heights

Middle market business leaders’ economic optimism reached an all-time high in Q4 2024, even as potential uncertainty edged up.

Chart of the week

Private credit is a small fraction of the U.S. credit market

In contrast to the headlines, the primary story in private credit is the change in market share, not the change in market size.

Search our site