Despite some of the negative headlines, overall performance remained strong in private credit, supported by wide spreads and elevated base rates. There is still a yield premium in direct lending versus broadly syndicated loans (BSLs), but spreads have tightened, particularly in the upper middle market. Key themes for 2026 include a focus on attractive areas of direct lending, such as European and core/lower middle market borrowers, as well as select segments within asset-backed lending (ABL) like NAV loans and transitional real estate lending. Read the 2026 Private Credit Strategy Outlook to learn more.
