The numbers are getting goofy
Moody’s Ratings says the fund finance market has now blown past the $1 trillion mark this year. That’s not a typo, and it’s not exactly pocket change. The engine behind the surge? Private credit, which keeps pulling more capital into the corners of finance that used to feel niche and now feel, well, very much not niche.
Why you should care
Fund finance is one of those plumbing-level parts of the market that most people ignore until it starts leaking everywhere. If it keeps growing this fast, it can change how private funds borrow, how lenders underwrite risk, and how much leverage is floating around the system.
The private credit ripple effect
Private credit has been the all-you-can-eat buffet of the asset-management world, and this report says fund finance is another aisle getting crowded. More demand from private lenders usually means:
- more competition for financing deals
- more complexity in how credit is structured
- more attention from regulators and risk managers
That doesn’t mean trouble is around the corner. But it does mean this corner of the market is no longer a sleepy back office thing. It’s getting big enough that investors, banks, and policymakers all have skin in the game.
Big picture
When a market passes $1 trillion, it stops being a footnote and starts becoming part of the main plot. And in 2026, private credit is clearly one of finance’s biggest plot twists.