Private credit assets under management are projected to surpass $4 trillion by 2030, with growing momentum in the Asia-Pacific (APAC) and EMEA regions, Moody’s estimates. The ratings agency added that AUM is expected to top $2 trillion as early as 2026.
APAC is positioned for strong growth, driven by its relatively low base, increasing domestic funding needs, and investors seeking higher yields and diversification. Although U.S. corporate direct lending is likely to remain dominant in 2026, investment opportunities are increasingly shifting toward regions such as EMEA and APAC, as well as newer asset classes, as investors broaden their return strategies, according to Moody’s 21 January 2026 report.
The outlook for APAC is further supported by steady economic expansion, regulatory enhancements, and rising demand for flexible, non-bank financing—particularly in Australia, Japan, and India.
Meanwhile, returns in traditional corporate direct lending have tightened amid stronger competition from the broadly syndicated loan (BSL) market. As interest rates have declined from recent peaks, borrowers have increasingly turned back to syndicated loans for lower-cost funding, allowing BSLs to regain market share over the past two years, Moody’s noted.
Outside of corporate lending, asset-backed finance is gaining traction as a key growth area, with large-scale transactions becoming more common. Public and private capital markets are increasingly aligning to fund major projects such as infrastructure developments, data center networks, and large corporate mergers, the agency added.
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