In its August 2025 issue, portfolio institutionell examines recent developments in global private credit markets, looking at the opportunities and risks as well as the structural shifts taking place across the asset class.

The article discusses the continued strong growth of private credit, increasing spread compression and intensifying competition, alongside the growing importance of collateral, robust documentation and disciplined credit selection. It also takes a critical look at the role of private credit as an alternative to private equity, particularly in the current interest rate environment.

Deutsche Credit is also quoted as part of the market analysis. Dr Nicolaus Loos, founder, CEO and CIO of Deutsche Credit, explains the advantages of bilateral direct lending transactions in the upper mid-market. In this segment, he sees scope for tighter covenants, stronger security packages and attractive margins compared with larger, more competitive transactions.

The article also explores the increasing accessibility of private markets to wealth investors, the trend towards larger credit funds and the question of how resilient the asset class would prove in a potential downturn.