Almost 80 per cent of general partners (GPs) are expecting cross-border deal volumes to rise over the next three years, but reporting and transparency concerns are deterring limited partners (LPs), according to new research from CSC.
CSC’s Private Credit 2025: Global Strategies report, which covers the $1.5tn (£1.1bn) market, found that while both LPs and GPs remain broadly optimistic about the asset class, a “growing disconnect” has emerged between the two groups over operational readiness.
Nearly eight in 10 GPs (79 per cent) predict growth over the next three years, with more than half (51 per cent) expecting a significant acceleration in cross-border private credit deals.
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However, the report also revealed that 40 per cent of LPs rejected private credit investment opportunities last year due to reporting or operational concerns, including inconsistent disclosure standards and unclear risk frameworks.
“The global expansion of private credit is undeniable, but the operational complexity it brings must not be underestimated,” said Bas Coenen, CSC’s head of fund solutions for Europe. “Operating across multiple jurisdictions introduces a maze of reporting requirements, investor expectations and compliance standards. Even managing a handful of markets can prove challenging. The message from investors is clear: confidence in cross-border strategies hinges on transparency, regulatory alignment and flawless execution.”
While LPs remain cautious, the report noted that GPs appear less concerned as they acknowledge the operational challenges of scaling across borders, particularly around anti-money laundering rules, multi-jurisdictional reporting and enforcing covenants across disparate legal systems.
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Transparency and reporting demands from LPs now rank among managers’ top concerns, second only to the complexity of deal structuring, CSC said.
At the same time, LPs are shifting their priorities towards more granular and consistent data on loan performance and borrower credit quality. As a result, GPs are investing in technology upgrades and working more closely with specialist service providers.
Currently, 82 per cent of managers rely on third-party loan agents, with 66 per cent having done so regularly over the past year. That figure is expected to rise, with 88 per cent of respondents anticipating greater use, a trend supported by LPs.
“LPs know the data is available, and they’re demanding more of it, greater transparency, consistency and detail,” said David Kim, CSC’s managing director for North America. “That’s putting real pressure on managers to elevate their reporting capabilities and strengthen operational frameworks.”
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