Private credit has become an increasingly popular alternative investment over the past decade, as investors seek higher yields in a low interest rate environment. Private credit funds provide loans to companies that cannot access public markets, generating steady cash flows from interest payments. According to Preqin data, private credit assets under management exceeded $900 billion globally in 2020. With the growing interest in this asset class, here is an overview of some of the major private credit funds based on total assets under management:
KKR’s private credit platform is a leader in the space
KKR’s private credit platform manages over $90 billion in assets, making it one of the largest private credit managers globally. The platform provides financing solutions across the capital structure, including senior loans, mezzanine debt and high-yield bonds. KKR leverages its broad origination network and underwriting expertise to source proprietary investment opportunities. Some of the key funds managed by KKR’s private credit business include KKR Private Credit Opportunities Partners, KKR Lending Partners Funds and KKR Mezzanine Partners.
Ares Management established an early presence in private credit
Ares Management has been active in private credit since its founding in 1997 and currently manages over $70 billion in private credit assets. Its offerings span U.S. and European direct lending, distressed credit, structured credit and specialty finance. Ares Capital Corporation, a business development company sub-advised by Ares, has been one of the largest providers of private debt to middle market companies in the U.S. for two decades.
Apollo Global Management leverages its credit expertise
With over $50 billion in private credit assets, Apollo Global Management is a leading private credit manager globally. Apollo applies its deep expertise in credit markets across a range of private lending strategies, including senior loans, opportunistic credit and structured credit. Notable private credit funds managed by Apollo include Apollo Investment Corporation, a publicly-traded BDC, and Apollo Accord/Athene managed accounts focused on illiquid credit investments.
Blackstone is scaling its private credit capabilities
Blackstone has been strategically growing its private credit platform over the past decade to over $50 billion in AUM currently. Blackstone Private Credit engages in senior lending, mezzanine lending, distressed credit and specialty finance strategies across sectors globally. Its flagship fund series include Blackstone Private Credit Fund and Blackstone Credit Opportunities Fund. With its strong brand and distribution channels, Blackstone is well positioned to continue gaining share in private credit.
Carlyle makes private credit a central part of its platform
Global alternative asset manager Carlyle manages approximately $50 billion in its Global Credit platform. Carlyle offers capital solutions across the credit spectrum, including liquid credit, private opportunistic credit, structured credit and distressed credit. Key funds include Carlyle Global Credit Opportunity Funds, Carlyle Private Credit Funds and Carlyle Distressed Credit Funds. Carlyle has cultivated deep relationships in the lending markets, enabling it to source unique deal flow.
In summary, private credit has emerged as an attractive segment for alternative asset managers, with KKR, Ares, Apollo, Blackstone and Carlyle among the leaders in this space managing billions in private credit assets. As competition for deals intensifies, managers are looking to differentiate themselves through industry or regional specialization and developing proprietary origination channels. With in-house credit expertise to perform rigorous due diligence, leading private credit platforms are positioned to find the best risk-adjusted opportunities in this growing market.