KBRA’s Recap of Private Credit Webinar Focuses on Asset Managers

KBRA recently hosted a webinar focusing on Private Credit: Asset Managers, outlining key insights from the event. The rated universe of asset managers has significantly grown since 2019, encompassing more than 60 firms globally that deal with private equity, private credit, real estate, infrastructure, and wealth management. These firms manage assets ranging from approximately $1 billion to over $480 billion, with a notable portion based outside the U.S., mainly in Europe.

Alternative asset managers were highlighted as a robust asset class within financial institutions. They benefit from recurring management fees, long-term closed-end fund structures, limited management company leverage, and solid operating cash flow. Ratings for these asset managers vary from AA to below-investment grade categories.

The strategic issuance of debt has been on the rise in recent years, serving purposes like co-investments, new strategies, mergers and acquisitions, and succession planning. Debt issuance escalated from $1.5 billion in 2023 to exceeding $6 billion in 2024 and over $9 billion in 2025. The majority of issuance consists of senior unsecured debt, with 74% being fixed-rate.

Looking ahead to 2026, KBRA has maintained Stable Outlooks for most rated asset managers, acknowledging the potential for varied performance in a selective exit market, ongoing fundraising challenges, and continued product innovation such as semi-liquid and evergreen vehicles. KBRA intends to closely observe risk management practices, organizational infrastructure, uncertainties related to artificial intelligence (AI), and redemption risk. However, KBRA anticipates that these risks will generally remain contained within the rated portfolio.

The future outlook of rated asset managers is being closely monitored by industry experts. Despite potential challenges, the stability and strength of the majority of asset managers are expected to endure, with a proactive approach to managing risks and embracing opportunities for growth and innovation.

For further insights and detailed analyses, interested individuals can refer to the report. KBRA remains committed to providing comprehensive assessments and updates on the private credit sector, ensuring stakeholders are well-informed and equipped to navigate the evolving landscape of asset management.

In conclusion, the webinar provided valuable insights into the private credit industry, shedding light on the resilience, strategies, and outlook of asset managers in a dynamic and competitive financial landscape.