Key Takeaways
- • Goldman Sachs Alternatives' 2026 Global Alternatives Survey: The Private Credit View, published 10 November 2026, found 56 per cent of LPs feel under-allocated to private credit, up from 43 per cent in 2025.
- • The survey canvassed 225 LPs and 36 general partners worldwide, with GPs prioritising wealth-channel expansion and evergreen vehicles, which together accounted for 84 per cent of responses.
- • Asset-backed finance is the favoured strategy, with 58 per cent of LPs planning to increase commitments to it.
- • More than half of allocators name rising defaults as the single greatest risk to their private credit portfolios, followed by macroeconomic shock or recession (19 per cent), spread compression (16 per cent) and refinancing or maturity-wall concerns (12 per cent).
- • LPs are scrutinising manager valuation methodologies, seeking transparency and comparability across managers.
Summary
Private credit's investor base is broadening into the wealth channel, while a majority of limited partners say they remain under-allocated to the asset class and intend to increase their exposure, according to Goldman Sachs Alternatives. The asset manager's 2026 Global Alternatives Survey: The Private Credit View, published on Tuesday, 10 November, canvassed the views of 225 LPs and 36 general partners (GPs) worldwide.
The share of LPs reporting under-allocation rose to 56 per cent from 43 per cent in 2025. Against a competitive backdrop for the asset class, GPs focused on two themes: expansion into the wealth channel and growth of evergreen vehicles, which together accounted for 84 per cent of responses. According to GPs surveyed, private wealth investors are seeking the income and diversification private credit can offer, while evergreen structures provide a simpler and more flexible route to investment than traditional fund structures.
Asset-backed finance was the clear favourite among strategies, with 58 per cent of LPs planning to increase commitments. Vivek Bantwal, global co-head of private credit at Goldman Sachs Alternatives, said GPs "aren't waiting for the cycle to turn," and that competition now centres on origination and expertise rather than scale, alongside a diversified capital base through wealth channels and evergreen structures. His co-head, James Reynolds, said asset-backed finance "is no longer a satellite strategy," describing it as a structural answer to default and liquidity concerns, while traditional anchors remain intact.
Risk remains a concern. More than half of allocators named rising defaults as the single greatest risk to their private credit portfolios. The remaining 47 per cent of responses were spread across a macroeconomic shock or recession (19 per cent), spread compression (16 per cent) and refinancing or maturity-wall concerns (12 per cent). The report also flagged manager selection as a challenge, with LPs focusing on how managers value their portfolios and whether those methods are transparent and comparable across managers.
The share of LPs reporting under-allocation rose to 56 per cent from 43 per cent in 2025. Against a competitive backdrop for the asset class, GPs focused on two themes: expansion into the wealth channel and growth of evergreen vehicles, which together accounted for 84 per cent of responses. According to GPs surveyed, private wealth investors are seeking the income and diversification private credit can offer, while evergreen structures provide a simpler and more flexible route to investment than traditional fund structures.
Asset-backed finance was the clear favourite among strategies, with 58 per cent of LPs planning to increase commitments. Vivek Bantwal, global co-head of private credit at Goldman Sachs Alternatives, said GPs "aren't waiting for the cycle to turn," and that competition now centres on origination and expertise rather than scale, alongside a diversified capital base through wealth channels and evergreen structures. His co-head, James Reynolds, said asset-backed finance "is no longer a satellite strategy," describing it as a structural answer to default and liquidity concerns, while traditional anchors remain intact.
Risk remains a concern. More than half of allocators named rising defaults as the single greatest risk to their private credit portfolios. The remaining 47 per cent of responses were spread across a macroeconomic shock or recession (19 per cent), spread compression (16 per cent) and refinancing or maturity-wall concerns (12 per cent). The report also flagged manager selection as a challenge, with LPs focusing on how managers value their portfolios and whether those methods are transparent and comparable across managers.
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