7 Largest Private Credit Funds in 2024: Leading Firms for Strategic Investment

Private credit has emerged as a rapidly growing asset class, offering investors access to non-publicly traded debt securities. These funds pool capital from institutional investors and allocate it across a diverse range of debt instruments, including senior loans, mezzanine financing, and high-yield bonds.

In recent years, the private credit market has seen significant expansion, driven by investor demand for higher-yielding alternatives to traditional fixed-income assets like long-term dividend stocks. Over the past decade, private credit funds have consistently outperformed public debt markets, and their popularity is expected to rise further in the coming years.

What is a private credit fund?

A private credit fund is an investment vehicle that primarily focuses on providing financing to non-publicly traded companies and borrowers. These funds raise capital from a select group of accredited or institutional investors and then deploy that capital to extend loans or other forms of credit to businesses. Private credit funds operate in the alternative lending space, often catering to borrowers who may not easily access traditional bank loans or public debt markets.

In the past 15 years, there has been a large increase in private credit, with the market surpassing $380 billion in 2022 (up from roughly $50 billion in 2007). The large increase speaks to the growing need for businesses to increase their total loan balance, bypassing traditional intermediaries, primarily banks.

Private credit capital fundraising has increased by over 600% since 2005, surpassing $380 billion in 2022. Source: Calamos Investments

What are the largest credit funds?

In the following sections, we are going to examine the largest credit funds in the world, sorted by their five-year fundraising total.

1. Blackstone Inc. – Leading global alternative investment management firm

Blackstone is a global alternative investment management firm that specializes in a wide range of financial services, including private equity, real estate, hedge funds, credit, and other investment strategies. It's one of the largest and most influential firms in the world of finance, controlling over $1.1 trillion in assets under management.

According to a 2023 report from Private Equity International, a prominent data provider for the private equity industry, Blackstone raised more than $125 billion in private credit fundraising, leading all private credit funds in that regard.

2. KKR (Kohlberg Kravis Roberts) – Operating in the alternative investment space

Kohlberg Kravis Roberts, better known as KKR, is another well-known global investment firm that operates in the alternative investment space. KKR is primarily involved in private equity investments, but it also has a presence in various other areas, such as real estate, credit, and infrastructure investments.

KKR was founded in 1976 by Jerome Kohlberg, a Harvard Business School graduate and one of the pioneers of private equity and leveraged buyouts in the United States. As of 2024, the firm has more than half a trillion dollars in AUM, having raised over $103 billion in private credit fundraising in the last 5 years alone.

3. EQT Partners – Focusing on private equity and venture capital investments

EQT Partners is a global investment organization that primarily focuses on private equity and venture capital investments. It is known for its significant presence in Europe and has expanded its operations worldwide. EQT Partners manages various funds and investment strategies, covering a wide range of industries, including the private debt sector.

The firm is headquartered in Sweden and has two subsidiaries – EQT Ventures, which is focused primarily on European and US tech companies, and BPEA EQT, which is an Asian investment firm based in Hong Kong acquired by EQT Partners in 2022 for $7.5 billion.

4. CVC Capital Partners – Investing across a wide range of industries

CVC Capital Partners is a leading private equity and investment advisory firm with a global presence. Established in 1981, CVC primarily focuses on buyouts, growth capital, and strategic investments across a wide range of industries, including consumer goods, healthcare, financial services, and technology. The firm operates through a network of offices in Europe, the Americas, and Asia, managing funds on behalf of institutional investors and sovereign wealth funds.

Headquartered in Luxembourg, CVC Capital Partners has been instrumental in high-profile transactions, including its acquisition of a controlling stake in Formula 1 in 2006 and its more recent investments in cutting-edge sectors like renewable energy.

5. TPG Inc. – Specializing in leveraged buyouts and growth capital

TPG Inc., formerly known as Texas Pacific Group, is a global private equity firm specializing in leveraged buyouts, growth capital, and venture investments. Founded in 1992 in Fort Worth, Texas, TPG has expanded its operations worldwide, with significant investments across healthcare, technology, retail, and real estate industries. The firm is co-led by Jon Winkelried, a former Goldman Sachs executive, who drives its investment strategies.

With notable transactions such as its stake in Airbnb and Uber during their growth phases, TPG is known for identifying high-growth opportunities and building sustainable value. The firm manages a diverse portfolio of funds, including TPG Growth and TPG Capital, which focus on emerging markets and large-scale investments, respectively.

6. The Carlyle Group – A well-diversified private equity firm

Founded in Washington in 1987, the Carlyle Group is a multi-faceted private equity firm operating in leveraged buyouts, growth capital, energy, energy lending, structured credit, and real estate industries. Carlyle is led by Harvey Schwartz, who received his MBA from Columbia Business School and worked as president and co-chief operating officer at Goldman Sachs (GS).

The Carlyle Group was the largest private credit fund by capital raised in 2015, according to the PEI 300 Index. While it is currently placed sixth on the list (having raised $60.2 billion in the last five years), Carlyle is still one of the largest private equity firms in the world and one of the most important players in the financial landscape.

7. Thoma Bravo – Private equity firm focusing on the acquisition of software companies

Thoma Bravo is a Chicago-based private equity firm that is focused primarily on acquiring enterprise software companies. Some of the multi-billion dollar acquisitions made by Thoma Bravo include Riverbed Technology ($3.6 billion), Anaplan ($10.7 billion), and Medallia ($6.4 billion).

The firm is one of the youngest companies included on our list, having been founded in 2008. However, the firm succeeded Golder Thoma & Co, which was established all the way back in 1980, which means that Thoma Bravo didn’t exactly come out of nowhere to dominate the list of largest credit funds.

Private credit funds FAQs

What are examples of private credit?

Private credit encompasses a broad category of non-publicly traded debt and credit instruments. Examples include:

• Direct lending: Where private credit funds extend loans directly to businesses or borrowers.
• Mezzanine financing: A hybrid of debt and equity, often used in private equity deals.
• Distressed debt: Investing in the debt of financially troubled companies.
• Structured credit: Bundled and securitized credit assets, including collateralized loan obligations (CLOs).

Do private credit funds have carry?

Yes, private credit funds can have a carried interest (carry) structure, which is calculated using APR or APY. The carry typically allows fund managers to earn a share of the profits generated by the fund after a certain threshold return has been achieved, which incentivizes managers to deliver strong returns to investors.

How are private credit funds valued?

Private credit funds are typically valued based on the fair market value of the underlying assets, such as loans or debt instruments, as determined by an independent valuation process or in accordance with fund-specific policies. 

Why do investors like private credit?

Investors appreciate private credit for several reasons:

• Yield potential: Private credit investments often offer higher yields compared to traditional fixed-income assets, such as long-term dividend stocks.
• Portfolio diversification: Private credit can diversify investment portfolios, potentially reducing risk.
• Tailored risk-return profile: Investors can choose from a range of private credit strategies to match their risk appetite and return expectations.

What is another name for private credit?

Private credit is also known as private debt, and the terms are often used interchangeably in the finance industry.

Is private credit the same as debt?

Private credit is a subset of debt, but it differs in terms of its characteristics and where it resides in the financial markets. Debt can include publicly traded bonds and loans, while private credit refers to non-publicly traded debt and credit instruments, often extended by private credit funds or alternative lenders.

The bottom line: Private credit fundraising is on the rise

Private credit is an essential part of the modern financial system, allowing companies to take out loans without going to traditional intermediaries like banks. In the past couple of years, the popularity of private debt has increased severalfold, driving significant profits for private equity firms and increasing their AUM balances.

The allure of private credit has been especially apparent in the last two years, with interest rates pushing mortgage rates to multi-decade highs. While it’s true that private credit has become more expensive due to interest rates, it generally offers more flexibility than loans offered by banks (with some of the worst American banks using downright malicious business practices).