Private credit investments have increasingly become a mainstream aspect of registered investment adviser (RIA) portfolios, according to Alternative Fund Advisors’ RIA Private Credit Usage Survey.
Of the surveyed firms, 62 percent already allocate to private credit, with 18 percent planning to invest in the asset class in 2025. Forty-five percent of private credit investors allocate more than 5 percent to the asset class. Within private credit investments, interval funds are the most popular for allocations.
RIAs are seeking ways to diversify their strategies and funds, with direct lending being the most prevalent strategy, says the survey. Other sectors of the market, such as asset-based lending and real estate debt are seen in 42 percent of the firms surveyed.
Among the firms surveyed, 48 percent are planning to increase their private credit allocations in the next 12 months. In addition, the survey shows that firms are likely to continue diversifyin