Institutional investors boost private credit fundraising to $190B in H1 2026

With Intelligence says private credit fundraising reached $190 billion in the first half of 2026, up 53% from a year earlier, even as volatility and redemption pressure hit parts of the market. The report points to strong institutional demand, rising specialty finance activity and continued expansion in Europe and multi-region strategies.

Why it matters: - Institutional capital is still flowing into private credit even after a volatile start to 2026. - The shift matters because the sector is seeing both record fundraising and stress in retail-oriented products at the same time. - The report suggests private credit is broadening beyond direct lending into specialty finance and fund financing strategies.

What happened: - With Intelligence’s Private Credit Trends Report 2026 says private credit fundraising hit $190 billion in the first half of 2026. - That total is up 53% from the first half of 2025. - The first-half figure is just 21% below the full-year 2025 total of $240 billion. - James Harvey, research lead for private credit at With Intelligence, S&P Global, said many institutional investors treated the market’s swing in sentiment as an opportunity. - Harvey said retail investors have been pulling money out of the sector while institutions have doubled down.

The details: - Direct lending funds led fundraising with $100 billion in H1 2026. - That was double the first-half 2025 total and only $6 billion below the 2025 full-year direct lending total of $106 billion. - With Intelligence tracked $37 billion of specialty finance closes in H1 2026. - That total is 22% below the 2025 full-year record of $47 billion. - Several large specialty finance funds are already in market or preparing to launch. - The report says 2026 could push specialty finance fundraising above $50 billion. - Capital call and subscription line financing has gained traction, especially with insurance investors seeking short-dated, investment-grade risk and a spread pickup versus public markets. - The 10 largest non-traded BDCs managed a combined $245 billion as of Q1. - Those vehicles saw redemption requests average 13% in Q1 and 14% in Q2. - The median redemption rates were 10.1% in Q1 and 12.5% in Q2. - The redemption levels were well above the 5% threshold that lets managers limit withdrawals. - Elevated redemptions and loan markdowns pushed ’40 Act AuM down slightly from $657 billion in Q4 2025 to $655 billion in Q1 2026. - North American fundraising remained strong, with $71 billion of final closes in H1 2026. - Multi-region strategies drew $70 billion in fundraising in the first half. - European funds raised $44 billion in the first half. - Asia also saw heightened interest. - With Intelligence said its data and insights are now available on the S&P Capital IQ Pro platform. - The full With Intelligence Private Credit Trends Report 2026 is available through the company’s announcement here.

Between the lines: - The data show a split market: institutions are adding exposure while retail-facing products face withdrawals. - Fundraising strength in direct lending and specialty finance suggests investors still want private credit exposure, but they are favoring segments they view as more resilient or more tactical. - The rise in multi-region and European fundraising points to a broader geographic base for the asset class.

What's next: - Several large specialty finance funds already in market could lift 2026 totals above the $50 billion mark. - Ongoing volatility and redemption pressure may continue to reshape which private credit strategies gather the most capital. - The report’s distribution on S&P Capital IQ Pro could broaden access to the dataset for institutional users.

The bottom line: - Private credit remains a capital magnet for institutions, even as parts of the market face redemption stress and higher volatility.