Private debt managers expect there to be industry-wide consolidation over the next few years, according to a new report.
New research by Carne Group found that nearly all managers (96 per cent) surveyed globally anticipate industry-wide consolidation in the next five years, with 72 per cent expecting it to be significant, set against a backdrop of increasing regulatory demands.
Read more: Rithm Capital buys Crestline Management
It comes after a number of significant deals have been struck over the past few months. In July, Orix USA agreed to acquire a majority stake in Hilco Global, then BlackRock announced it was acquiring ElmTree Funds. This week, Rithm Capital announced it is buying Crestline Management.
“Consolidation is already in swing, with recent examples including BlackRock’s acquisition of HPS Investment Partners and Franklin Templeton and Clearlake expanding into the European market through their respective acquisitions of Apera and MV Credit,” added Des Fullam, chief regulatory and client solutions officer at Carne Group.
Read more: Private credit’s consolidation season
“Private debt, like all private markets, has gone mainstream with the expansion of private assets to retail and high net worth investors. Many managers are still playing catch-up operationally – a dynamic that’s driving consolidation across the industry.”
Carne’s survey also found that the majority of respondents (72 per cent) cited regulatory pressures as driving private debt managers to outsource distribution.
Read more: Boutique asset managers turn to outsourcing amid regulatory pressures
This follows similar findings from the 2025 Boutique Asset Management Survey from Universal Investment Group, with half (52 per cent) of respondents saying they plan to outsource at least one business function within the next 12-24 months, mainly due to mounting regulatory pressures.
“As regulation intensifies and talent thins, outsourcing has become a strategic must,” Fullam added.
