Introduction

Private credit has evolved from a niche strategy into one of the fastest-growing asset classes in global finance. Valued at $1.5 trillion in 2023, the market is projected to expand to $2.5 trillion by 2028, fuelled by investor appetite for yield, diversification, and bespoke credit exposures.

Behind this growth are a handful of global hubs that anchor the ecosystem. These centres of capital, regulation, and deal flow provide the infrastructure that investors and managers rely on to scale private credit strategies worldwide.

New York: The Financial Powerhouse

  • Share of Market: The United States accounts for ~55% of global private credit.
  • Scale: U.S. middle-market lending exceeded $100bn in 2022, led by healthcare, technology, and real estate.
  • Advantage: Deep secondary markets, established legal frameworks, and concentration of fund managers.

For allocators, New York remains the global benchmark: the deepest, most liquid, and most diversified private credit hub.

London: The Gateway to Europe

  • Assets Managed: Over €300bn in private debt as of 2023.
  • Market Share: The UK represents ~35% of Europe’s private credit activity.
  • Fundraising: European funds raised €129bn in 2022, with London managers leading cross-border activity.

Despite Brexit, London retains its role as Europe’s financial anchor. It continues to dominate private credit activity in infrastructure, SME financing, and real estate, underpinned by a sophisticated investor base.

Singapore: The Asian Alternative Credit Hub

  • Growth Outlook: Asia-Pacific private credit forecasted to grow at a 13% CAGR (2023–2028).
  • Market Share: 12% of global private credit, with $180bn allocated to Asia.
  • Deployment: $25bn in 2022, focused on trade finance, logistics, and technology.

Singapore’s strength lies in its position as a gateway to emerging economies like India, Indonesia, and Vietnam. For investors, it provides a launchpad into some of the world’s fastest-growing credit markets.

Dubai: The Middle East’s Private Credit Centre

  • Market Size: The Middle East’s private debt market is valued at $40bn.
  • Growth: Regional private credit transactions rose 25% in 2022.
  • Positioning: Dubai is the region’s hub, attracting international managers and local family offices.

As a financial bridge between East and West, Dubai offers investors exposure to infrastructure and real estate transactions in a region underpinned by capital-rich allocators and growing demand for structured credit.

Luxembourg: A European Stronghold

  • Funds: Home to 3,500+ investment funds, many specialising in private credit.
  • AUM: Roughly €80bn in private debt as of 2023.
  • Advantage: Tax-efficient, legally robust domiciliation for cross-border vehicles.

Luxembourg is less about direct origination and more about structural efficiency. It remains the preferred domicile for European private credit funds, particularly those targeting SMEs and real estate-backed strategies.

Private Credit Hubs

Conclusion

Private credit is no longer confined to a single geography — it is a truly global asset class, supported by hubs with distinct strengths.

  • New York delivers scale and liquidity.
  • London provides European access and cross-border deal flow.
  • Singapore opens doors to Asia’s emerging economies.
  • Dubai connects global managers to Middle Eastern capital.
  • Luxembourg offers institutional-grade fund structuring and governance.

For investors, understanding the geography of private credit is as important as evaluating the strategy. Allocating through the right hub can enhance diversification, improve structuring efficiency, and unlock opportunities across the global private markets landscape.