Private credit is often described as a democratising force — a way of connecting capital to businesses that the traditional banking system has underserved. That description is accurate, as far as it goes. But there's a version of the story that tends to get left out, and it's worth saying plainly: the infrastructure that enables a properly structured credit transaction to happen — the legal vehicle, the regulatory framework, the ring-fenced entity that sits at the centre of a deal — has remained largely inaccessible to the people who need it most.

That's the problem we built Kingsbury Securitisation Platform SARL to solve.

Why structure matters

It's tempting to treat structure as a secondary concern — the paperwork that follows the real decision-making. I'd argue that gets it precisely backwards.

Think about what a credit transaction actually requires. An allocator needs to know that the assets they're investing against are genuinely ring-fenced — that if something goes wrong elsewhere, their claim isn't compromised. A counterparty needs to be able to reference a real legal entity in documentation. A compliance team needs to be satisfied that the vehicle they're looking at is what it claims to be. None of that is possible without proper infrastructure. The reality is that proper infrastructure — a named, registered, bankruptcy-remote securitisation vehicle — costs significant time and money to build, which puts it beyond reach for most issuers outside the institutional mainstream.

The result is predictable. Good assets don't reach the market. Capital that would willingly fund them doesn't find them. The gap between what private credit could theoretically do and what it actually delivers remains wider than it should be.

The case for Luxembourg

Luxembourg wasn't an obvious choice in the sense that it's cheap or quick. It isn't either. It was the right choice because the jurisdiction spent decades building a legal framework specifically designed for securitisation. The Luxembourg Securitisation Law — most recently updated in 2022 — provides for bankruptcy-remote structures, segregated compartments, and the kind of regulatory clarity that institutional allocators in Europe and the Gulf have come to expect from a properly constructed vehicle.

The numbers reflect the confidence the market has placed in that framework. As of March 2025, there were 1,590 active securitisation undertakings registered in Luxembourg, collectively holding around €490 billion in assets and operating across between 7,000 and 8,000 compartments. According to ECB data, Luxembourg accounts for approximately 30% of all European securitisation transactions — the largest share of any jurisdiction in Europe. In 2024 alone, 190 new securitisation vehicles were established there. That concentration of activity in one jurisdiction is not accidental — it reflects twenty years of legal and regulatory groundwork that serious practitioners have consistently chosen over the alternatives.

When a deal runs through KSP SARL, it sits inside that framework — and the allocators on the other side can focus their attention on the credit itself, rather than spending time satisfying themselves that the structure will hold.

The gap that doesn't get talked about honestly

Private credit has grown dramatically over the past decade. From roughly $150 billion in assets under management twenty years ago, the market reached $3.5 trillion by the end of 2024 — an increase of 17% in that year alone, with capital deployment of $592.8 billion across private credit strategies, up 78% on 2023. Europe now accounts for close to 30% of global private credit AUM, and the market is projected to reach $5 trillion by 2029.

That growth is real and it has created genuine value. What the headlines tend to miss is that most of the benefit has accrued to a relatively small group of participants who were already well-positioned to begin with. The largest 20% of private credit managers deployed approximately 85% of all capital in 2024. The infrastructure that enables clean, credible issuance — a named vehicle, a sound legal framework, proper ring-fencing — has remained largely the preserve of that same group.

Consider the founder who has built a receivables book that ought to be financeable, but who can't get a term sheet that reflects the quality of the underlying asset. Or the emerging manager with a clear credit thesis and no issuance infrastructure behind it. Or the sponsor sitting on a portfolio of real assets with no clean route to capital. These aren't edge cases. They represent a significant portion of the deal flow that institutional capital never reaches — not because the credit is weak, but because the structural layer that would allow the transaction to happen simply wasn't there.

That's an expensive failure. It's expensive for issuers who end up with capital priced well above what the risk warrants, or no capital at all. It's expensive for allocators who never see the opportunity. And it's expensive for a market that talks endlessly about democratisation while leaving most of the value locked behind infrastructure that only the largest institutions can afford to build.

What KSP SARL covers

KSP SARL is designed to work across the full range of strategies that private credit actually encompasses: corporate debt and direct lending, asset-based lending, unitranche loans, trade finance, structured receivables, and real estate credit.

The breadth is deliberate, and it reflects something we've observed consistently in practice: real assets rarely sit neatly inside a single category. A portfolio of SME receivables might span asset-based lending and trade finance simultaneously. A unitranche facility might form part of a wider credit structure with different tranches carrying different risk profiles. Forcing a deal into a predetermined template in order to access infrastructure is exactly the kind of friction that good issuers don't need. KSP SARL is built to accommodate the asset as it actually exists.

Combined with CREDIFY, our structured credit issuance platform, the full journey from origination through to investor allocation runs through a single relationship with Kingsbury & Partners. For issuers, the practical implication is less overhead, less friction, and more time spent on what actually drives returns.

What this means if you're an issuer

The structural barrier that has historically made proper issuance difficult for anyone outside the institutional mainstream is no longer what it was. You don't need to spend a year and a significant legal budget establishing your own vehicle in Luxembourg. You don't need a pre-existing relationship with an investment bank that has already decided what kind of deals it wants to see.

What you do need is a credible asset, a coherent credit thesis, and the discipline to execute. The structural layer — the entity, the legal framework, the ring-fencing — is what KSP SARL provides. CREDIFY supports efficient deal execution getting you to market in 30 days. The rest comes down to the quality of what you're bringing to market, which is as it should be.

Where the market is heading

I think it's worth being direct about where private credit is headed, because the conditions that made the last decade relatively forgiving have shifted.

The years of abundant liquidity, compressed spreads, and allocators willing to accept almost any structure in pursuit of yield are behind us. What remains is a market that is becoming considerably more discerning — about credit quality, about the soundness of the underlying infrastructure, and about whether the people on both sides of a transaction have done the work properly. That shift was probably inevitable. Markets that expand rapidly and attractively tend to attract capital and competition faster than standards can keep pace with them. The correction, when it comes, is rarely kind to those who were relying on the environment rather than the fundamentals.

The issuers who navigate the next phase successfully will be those who took their structuring seriously before it became a competitive requirement — who built on proper foundations when they had the choice, rather than being forced to rebuild under pressure.

We built KSP SARL for the people who want to be in that position.

Sources

  1. Lexology / Elvinger Hoss Prussen — A general introduction to securitisation law in Luxembourg (September 2025). Active securitisation undertakings, compartment numbers, AUM, and ECB market share data. lexology.com
  2. PwC Luxembourg — Securitisation in Luxembourg: A Comprehensive Guide 2025 (June 2025). New vehicle formations in 2024; growth trajectory. pwc.lu
  3. Alternative Credit Council (ACC) / Houlihan Lokey — Financing the Economy 2025. Global private credit AUM ($3.5 trillion); 2024 deployment volumes ($592.8 billion, +78%); Europe's share of global AUM; top-20% manager concentration. aima.org
  4. Morgan Stanley Investment Management — Understanding Private Credit's Rapid Growth (2025). Historical AUM trajectory and $5 trillion projection to 2029. morganstanley.com
  5. Howard Marks / Oaktree Capital — What's Going on in Private Credit? (April 2025). Historical context on private credit market development; direct lending growth from $150 billion. oaktreecapital.com

Disclaimer:

Kingsbury Securitisation Platform SARL ("KSP SARL") is an unregulated securitisation vehicle incorporated in Luxembourg and operating under the Luxembourg law of 22 March 2004 on securitisation, as amended (the "Securitisation Law"). KSP SARL operates through segregated compartments and is not subject to authorisation or supervision by the CSSF in connection with its securitisation activities. Instruments issued by KSP SARL are available only to professional investors or other eligible investors as defined under applicable law. Nothing in this article constitutes an offer to sell or a solicitation of an offer to buy any instrument issued by KSP SARL.