PRIVATE credit managers appear to be moving beyond the market’s most turbulent period, although the industry’s next challenge is proving it can deliver steady returns without relying on the easy growth that fuelled its rapid expansion over the past few years.

A recent Bloomberg report highlighted that second-quarter results from many of the world’s largest publicly traded private credit funds suggest the sector is settling into a more measured phase, where portfolio quality, capital preservation and disciplined lending are taking precedence over aggressive expansion.