Earlier this year, we explored how private credit had evolved from a niche asset class into a $2 trillion powerhouse, with technology adoption emerging as a critical competitive edge. Since then, momentum has accelerated further, and several important shifts have taken shape. Here’s an update on what’s changed in the first half of the year – and what it means for private credit managers and technology innovators.

Institutional Allocations Have Diversified and Globalized

More pension funds, insurance companies, and global investors, especially in Europe and Asia, are committing capital to private credit. This broader base of allocators is driving demand for transparency, real-time risk analytics, and better portfolio infrastructure.

Moody’s now projects global private credit AUM will reach $3 trillion by 2028, reflecting strong momentum well beyond U.S. borders ([Moody’s, 2025]2).

M&A in the Ecosystem Is Accelerating

Consolidation is heating up among asset managers and credit platforms alike:

• BlackRock acquired HPS in late 2024 in a landmark move to scale its private credit footprint.
• Franklin Templeton acquired Apera Asset Management to expand its reach in UK and European private debt.
• CVC was reported to explore a bid for Golub Capital, highlighting ongoing interest in large-scale consolidation, even if that deal didn’t materialize.

This wave of M&A underscores the growing value placed on scaled infrastructure, access to deal flow, and technology leverage, all creating tailwinds for supporting software and data providers.

Technology Has Moved from “Nice to Have” to “Non-Negotiable”

With leaner deal teams, rising complexity, and a more demanding LP base, firms are prioritizing modern systems across the investment lifecycle. What used to be managed in spreadsheets is now moving to integrated platforms, particularly in:

• Portfolio monitoring
• LP reporting
• Syndicate collaboration
• Diligence and risk scoring

Proskauer’s 2025 market trends report notes a “material uptick in budget allocation for workflow and analytics tools,” and we’ve seen similar signals in our founder conversations ([Proskauer, 2025]7).

Regulatory Scrutiny Is Real and Growing

Regulators in the U.S. and EU are taking a harder look at private credit’s scale and systemic importance. A recent WSJ piece calls out concerns that bank-fueled growth may expose risks that traditional regulation doesn’t yet cover (WSJ, 2025).

For credit managers, this means increasing expectations around:

• Real-time portfolio transparency
• Leverage monitoring for further risk assessment
• Reporting consistency and data lineage

Firms without robust internal systems will struggle to meet these demands as scrutiny increases.

AI Adoption Has Quietly Entered the Chat

Earlier this year, most firms were cautiously testing AI-powered diligence tools. Now, pilots are underway, especially for:

• Data extraction / consolidation
• Deal analysis and memo creation
• Early-stage risk scoring and benchmarking

While few firms are underwriting on AI alone, the productivity gains are real, particularly in high-volume, lower-complexity deals.

What This Means Going Forward

The private credit market has grown more competitive and complex in the first half of the year. The biggest change: technology is no longer optional. Firms investing in modern systems for execution, monitoring, and reporting are pulling ahead, while those relying on manual workflows risk falling behind.

Key focus areas for the remainder of 2025:

• Accelerated adoption of tech for portfolio management and syndicate collaboration.
• Prepare for heightened regulatory and LP scrutiny with robust data infrastructure.
• Leverage AI and automation to scale diligence and reporting amid growing deal flow.
• Stay agile as global capital flows and market dynamics continue to evolve.

We will keep monitoring these trends and sharing insights as the market evolves. For founders and investors in private credit technology, the opportunity is expanding—but so is the bar for execution.

This article is for informational purposes only and does not constitute investment advice. Views expressed represent the opinions of Jump Capital. Jump Capital may have investments in or pursue investments in the Private Credit sectors discussed. Forward-looking statements involve risks and uncertainties, and references to specific companies or their capabilities do not constitute investment recommendations or guarantee future performance.