A third of limited partners (LPs) believe that private credit secondaries will be the fastest-growing secondary market over the next three years, ahead of private equity (34 per cent) and infrastructure (16 per cent), according to a new survey.
The barometer from Coller Capital surveyed 108 LPs from around the world, more than half of whom had more than $10bn under management, and found investors are broadly committed to private credit, with 58 per cent expecting to maintain their current allocations to the asset class.
However, it also found that the proportion planning to increase their allocation over the next 12 months has fallen to 29 per cent from 42 per cent in December 2025. Around 13 per cent of investors said they plan to reduce their allocation.
Read more: Private credit secondaries on the rise
LPs generally showed a more nuanced view of private credit risk than prevailing market narratives have suggested. Just 18 per cent said they believe there is a systemic problem in private credit, while 29 per cent are comfortable that risk in the asset class is in line with expectations.
This is translating to greater selectivity when it comes to backing emerging private credit managers, with the majority now viewing recently established firms as less attractive across every major region. This is most pronounced in North America, where 72 per cent of surveyed LPs now see emerging manager commitments as less attractive, up from 46 per cent in 2022.
Read more: Growing investor appetite for secondaries
There were also concerns around reporting and transparency and private credit risk. Less than half of investors (49 per cent) described their understanding of expected loss ratios in their private credit ratios as good or very good.
“The growth of private credit secondaries reflects a much bigger shift in private markets as the market becomes wider and deeper it can support other asset classes. Private credit, like private equity a decade before, has scaled rapidly but with market infrastructure that is still developing. As portfolios mature and investors become more active in managing liquidity, duration and exposure, credit secondaries will become a central part of investors allocations,” said Jeremy Coller, chief investment officer and managing partner of Coller Capital.
