Key Takeaways
- • PitchBook reports global private debt AUM reached $2T by mid-2025, rising above $2.6T when perpetual vehicles in wealth and insurance channels are included.
- • Private debt funds closing in 2025 raised $221.2B across 206 funds, a 7.8% decline from 2024, with managers on their fourth fund or later capturing 93% of capital.
- • First-time managers raised just $3.7B across 18 funds, the lowest level on record, while megafunds of $5B or more accounted for 36.3% of capital raised.
- • North America held 60.5% of capital raised, Europe 35.9% ($79.4B), and Asia's share of fund count rose above 10% for the first time at 14.1%.
- • Insurance allocations totaled nearly $100B over the trailing 12 months through Q4 2025, while dry powder rose 8.5% from year-end 2024 and is expected to moderate through 2026.
Summary
Global private debt assets under management reached $2T by mid-2025, according to a new PitchBook report, and exceeded $2.6T when perpetual vehicles in wealth and insurance channels are included. Direct lending remains the anchor of the market, with institutional drawdown funds holding $751B, up from $89B in 2014, a 22.5% compound annual growth rate over the period.
Fundraising in 2025 was concentrated among established managers. A total of 206 private debt funds closed, raising $221.2B, a 7.8% decline from 2024. Managers raising their fourth fund or later captured 93% of that capital, while first-time managers raised $3.7B across 18 funds, the lowest level on record. Funds of $1B or more accounted for 83.5% of capital raised but only 31.7% of fund count. Median fund size rose 45.5% year-over-year, and 80% of funds closed in 2025 were larger than their predecessors. Megafunds of $5B or more represented 36.3% of capital raised. Average time to close stretched to 23.5 months from a five-year average of 19.2 months. Among the largest closings were Ares Capital Europe VI ($17.7B) and Oaktree Opportunities Fund XII ($16B).
Geographically, North America retained the majority of capital with 60.5% of the total and 59.7% of fund count. Europe raised $79.4B, or 35.9% of global capital, driven in part by U.S. limited partners seeking diversification. Asia's share climbed to 3.2% of capital and 14.1% of fund count, surpassing 10% of fund count for the first time.
Wealth and insurance channels continued to drive inflows. Insurance allocations totaled nearly $100B over the trailing 12 months through Q4 2025, mainly via separately managed accounts and rate feeder funds. Wealth investors, including family offices, private banks and registered investment advisors, also boosted fundraising as managers target this segment for higher yields and diversification.
Dry powder rose 8.5% from year-end 2024, reflecting reporting lags through June 30, 2025. PitchBook considers the level historically high but expects available capital to moderate modestly through 2026 as dealmaking accelerates. The report characterizes the market as maturing and consolidating, with larger, experienced managers capturing most capital despite near-term volatility.
Fundraising in 2025 was concentrated among established managers. A total of 206 private debt funds closed, raising $221.2B, a 7.8% decline from 2024. Managers raising their fourth fund or later captured 93% of that capital, while first-time managers raised $3.7B across 18 funds, the lowest level on record. Funds of $1B or more accounted for 83.5% of capital raised but only 31.7% of fund count. Median fund size rose 45.5% year-over-year, and 80% of funds closed in 2025 were larger than their predecessors. Megafunds of $5B or more represented 36.3% of capital raised. Average time to close stretched to 23.5 months from a five-year average of 19.2 months. Among the largest closings were Ares Capital Europe VI ($17.7B) and Oaktree Opportunities Fund XII ($16B).
Geographically, North America retained the majority of capital with 60.5% of the total and 59.7% of fund count. Europe raised $79.4B, or 35.9% of global capital, driven in part by U.S. limited partners seeking diversification. Asia's share climbed to 3.2% of capital and 14.1% of fund count, surpassing 10% of fund count for the first time.
Wealth and insurance channels continued to drive inflows. Insurance allocations totaled nearly $100B over the trailing 12 months through Q4 2025, mainly via separately managed accounts and rate feeder funds. Wealth investors, including family offices, private banks and registered investment advisors, also boosted fundraising as managers target this segment for higher yields and diversification.
Dry powder rose 8.5% from year-end 2024, reflecting reporting lags through June 30, 2025. PitchBook considers the level historically high but expects available capital to moderate modestly through 2026 as dealmaking accelerates. The report characterizes the market as maturing and consolidating, with larger, experienced managers capturing most capital despite near-term volatility.
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