Private credit: legal perspectives on a growing market

Since the 2008 global financial crisis, which triggered severe market disruption, the private credit market has expanded at an extraordinary pace. The International Monetary Fund estimates that global private credit surpassed US$2 trillion by April 2024, increasingly operating outside public markets and traditional bank lending channels. Private credit broadly refers to non-bank, non publicly traded debt provided by private institutions or individual investors. According to James Reynolds, co head of private credit at Goldman Sachs Asset Management, it can serve as a defensive asset class, offering portfolio stability during periods of economic uncertainty.

As the market grows, transaction terms have become more bespoke, from tailored agreements and complex covenants to intricate intercreditor arrangements in unitranche or mezzanine structures. For legal advisers, understanding this evolving landscape—commercial drivers, risk appetite, financing documents, security packages, and regulatory developments—is essential. Delivering commercially informed, technically sound advice is critical for supporting lenders, borrowers, and sponsors across these sophisticated transactions.

The full article was published in Oxford Law Pro (behind paywall) in November 2025.