Blackstone Inc. predicts the private credit market could expand to $30 trillion, driven by infrastructure financing and pensions. Currently, private debt stands at $1.7 trillion, primarily funding private equity, but Rob Horn, global head of infrastructure and asset-based credit at Blackstone, views this as just a fraction of the opportunity.
Private lenders are expected to take market share from banks, which now dominate the asset-based credit sector, with Blackstone focusing on areas like energy transition, digital infrastructure, and real estate.
Pension and sovereign wealth funds are also taking notice, potentially increasing their private debt allocations. Blackstone expects significant future growth in sectors like data centers, where investments could top $1 trillion over five years.
Finsum: While private equity has struggled to secure its footing in the same way private debt has, this expansion looks very stable.
- private credit
- diversification
- Growth
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
