Private Credit Gets Creative as Fundraises Take Longer Than Ever

Private credit funds running down their traditional sources of cash are developing new ways to branch out to insurance and retail investors, the next potential drivers of their growth.

The need for alternative drivers hit home as a report revealed that the time to raise a traditional fund aimed at institutional investors had reached a record 23 months. According to PitchBook, which published the report last week, that marks the longest stretch since at least 2006. In the heyday of 2021, some funds closed within a year.

“When we ask where do we see the growth coming from, it’s from ...