In a survey by Moody’s of large global insurers, almost 80% said they plan to grow their holdings of one or more classes of private credit.

By asset class: 44% expect to increase asset-backed finance and private placements, 39% for mid-market lending and infrastructure lending, and 22% for fund finance.

In the US and Canada, private credit is now 36% of total investment allocations. It is lower for the UK (24%), Europe (13%) and APAC (6%).

This presents opportunities for borrowers, investment banks and service providers.

Positioning for growth in asset-backed private debt seems a good bet for the US. For outside the US, more established private credit asset classes seem best – commercial real estate, corporate private placements, and mid-market lending.

This growth is likely to continue for the next few years. Private credit give insurers a yield uplift, can be accounted as held-to-maturity, and has become accepted as mainstream.