Increased alignment between banks and private credit firms is driving a push for greater transparency and operational readiness, according to Sumit Gupta, chief executive of Oxane Partners.
Speaking to Alternative Credit Investor, Gupta said that a “clear trend” in the market is more collaboration between banks and private credit firms, giving way to “a more connected market”.
“Having worked closely with both banks and private credit managers, we’re seeing a clear trend: deeper alignment between the two,” he said.
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“While bank retrenchment drove the initial growth of private credit post-GFC, banks are no longer stepping back – they are evolving their role in this new phase of private credit. Banks are drawing on the structuring depth, speed and flexibility of private funds, while funds rely on banks for origination flow, leverage, and co-investment capital.
“We are increasingly seeing banks are participating not as competitors, but as collaborators – either originating assets for fund deployment or lending directly to the funds themselves. The old boundaries between traditional and private credit are giving way to a more collaborative, connected market.”
He said this increased collaboration is “not just changing who participates, it’s influencing how deals get done”.
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“Structures are more bespoke, and expectations around transparency and operational readiness are rising. What the market needs now isn’t just speed, it’s coordination – and from where we stand, this isn’t a passing shift. It’s becoming a defining feature of how private credit will continue to expand, scale and institutionalise in the years ahead.”
Gupta added that private credit is “entering a new phase” where it is “broader in scope, deeper in complexity, and more central to global credit markets than ever before”.
“Direct lending remains a vital component of this growth, with sustained momentum on fundraising, deals, new partnerships and consolidation, but what stands out today is how private credit as a whole is evolving beyond its original mould,” he said.
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“We’re no longer just talking about senior-secured corporate loans. The private credit market now extends across asset-based finance, private ABS, fund finance and a lot more, casting a wider net across the credit spectrum.
“This shift isn’t just about scale. It reflects a structurally more complex and interconnected market, where capital is being deployed across diverse strategies and underlying collateral.”
