Metrics Credit Partners has released its latest research paper, Six Trends for Private Credit in 2026, exploring the opportunities and challenges shaping the sector in the year ahead.

Private credit has proven its durability through 2025, with fundamentals strengthening despite heightened competition and regulatory review.

Looking ahead to 2026, six key trends are expected to shape opportunities and risks across the sector.

1. Cautious optimism as global headwinds subside – easing geopolitical tensions and stronger growth prospects in the US and China could reinforce confidence across economies.
2. Interest rates may not fall as much as anticipated – inflationary pressures suggest a prolonged period of stable rates, supporting investor returns while borrower demand remains strong.
3. Market fundamentals are likely to improve further – residential development, industrial property, and corporate lending are expected to strengthen, creating robust demand for private credit.
4. Establishing industry standards should be a positive for private credit: ASIC’s review of the sector is set to drive improved transparency and reporting, enhancing investor confidence.
5. Private credit’s strong growth is expected to continue – capital inflows remain robust, with corporates planning to lift private credit funding significantly.
6. Lending competition is expected to remain strong – non‑bank lenders and banks will compete intensely for prime deals, with differentiation shifting toward speed, flexibility, and structure.

CEO Perspective

“As we move into 2026, Metrics sees a private credit sector that is both expanding and evolving. Capital inflows into the asset class continue to accelerate, underscoring investor confidence in private credit’s resilience and its ability to deliver attractive outcomes in an environment of heightened global uncertainty. We also expect confidence in private credit to strengthen as regulatory clarity emerges. ASIC’s industry driven approach to standards will enhance transparency and trust, and Metrics intends to play a leading role in shaping this framework.”

— Andrew Lockhart, CEO & Managing Partner, Metrics Credit Partners

 Read Research Paper