Consolidation in asset management with a focus on private credit is not over yet, as firms continue to seek additional expertise and geographical reach.
Since 2020, there have been 204 acquisitions of firms with private credit expertise according to PitchBook, with buyers spending more than $200bn (£148bn) on deals overall.
The number of acquisitions has steadily increased each year, reaching 37 in 2025. In the first quarter of 2026, there were eight acquisitions recorded.
These deals include firms that are private credit specialists – such as the acquisition of HPS Investment Partners by BlackRock – as well as general partners with private credit divisions, such as the purchase of Schroders, which runs $41.6bn in private debt and credit alternatives, by Nuveen.
Read more: Capital consolidation at largest alternative managers accelerates
According to Morris F. DeFeo, Jr, a partner at Herrick Feinstein, the demand for alternative credit will continue to grow and will inevitably drive more and more participants into the market.
“They will be looking for economies of scale, additional growth opportunities, geographically and in different industry segments,” he said. “At some point you’re going to be looking for acquisition targets. In any market that’s growing and thriving there will be the need for continued expansion of investment opportunities and therefore talent.”
He added that the challenges seen in the private credit market currently are not intrinsic or systemic. In his view, the asset class is doing well and will continue to do very well despite any headwinds.
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In addition to acquisitions, he believes there will be more strategic collaborations or joint ventures, particularly in cases where asset managers are not ready for a full acquisition and are not “quite ready to commit the capital and resources to plunge into a market”.
Although he says this approach can be enticing, it can also be really problematic if the two parties do not align properly.
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