Private Credit Funds Raise Billions Amid Warnings of Looser Loan Practices and Rising Borrower Stress

Private credit funds continue to raise billions despite warnings of loosening loan approval and risk-assessment practices, and rising borrower stress. Despite investor withdrawals, funds like KKR, TPG, and Neuberger Berman have successfully closed large fundraising rounds, underscoring strong demand from institutional investors. JPMorgan has reassessed its stance on private credit, citing structural forces like persistent financing needs among middle-market companies and asset-backed borrowers.