Private credit growth shifts toward specialized strategies, Morningstar DBRS says

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Highlights

Speakers at Debtwire's Private Credit Forum 2026 report private credit's growth is shifting beyond direct lending into asset-backed finance, infrastructure debt, and AI-related data center lending.
Morningstar DBRS notes that upcoming growth will rely on asset managers' ability to execute more complex, specialized strategies requiring stronger underwriting and valuation skills.
Rising AI-related disruption and upcoming refinancing waves are increasing credit volatility for software and technology borrowers, while operational differentiation becomes crucial for competing asset managers.

Forum signals a broader private credit model

As reported by Morningstar DBRS, speakers at Debtwire's annual Private Credit Forum 2026 on June 3 in New York say private credit remains an important growth driver for asset managers, but the market is broadening beyond direct lending. That expansion is moving into areas with different risk, liquidity and operational requirements, raising the importance of execution across more complex parts of the market.

Shaima Ahmadi, Assistant Vice President, North American Financial Institution Ratings, says conference discussions suggest the next stage of growth is likely to depend less on traditional direct lending alone and more on managers' ability to operate in specialized strategies. She points to asset-backed finance, infrastructure debt, private investment-grade credit and AI-related data center lending as areas requiring stronger underwriting, valuation, servicing and structuring capabilities.

Manager differentiation and credit risks come into focus

Participants also say AI-related disruption and later-dated refinancing needs are adding to credit volatility, particularly for software and technology-enabled borrowers. Near-term maturity pressures appear manageable, but the sector still faces a changing risk backdrop as refinancing demands build over time.

Retail investor access remains an important channel for growth, yet liquidity expectations and redemption headlines are affecting reputational considerations and some franchise dynamics. The forum's discussion indicates that as managers expand into adjacent strategies, differentiation is likely to increase across the industry, with firms that can handle specialized operational demands potentially gaining an advantage.

In our earlier coverage of Fora Financial’s Series 2026-1 asset-backed securitization, we outlined how the company returned to the ABS market with a $130 million transaction across five note classes, structured to potentially expand up to $500 million during the revolving period. We also noted how proceeds are earmarked to purchase small-business receivables, fund reserves and expenses, and refinance prior notes, while eligibility criteria and concentration limits are designed to protect noteholders as the receivables book grows.

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