Private Credit Expansion into Infrastructure and Asset-Based Finance

ongoing

The nearly $2 trillion private credit industry is entering a new phase focusing on larger borrowers and hard-asset financing, including investment-grade infrastructure and asset-based finance. Moody's Ratings highlights increased demand from investment-grade regulated networks, contracted infrastructure, and platform-level assets, with a growing focus on infrastructure-linked capital needs and complex corporate structures. Examples include Apollo Global Management's $3.5 billion capital solution for Valor Compute Infrastructure and KKR and Canada Pension Plan Investment Board's $10 billion stake in Sempra Infrastructure Partners. Blackstone launched SablePointe Credit Strategies to support asset-based lending, and Ares Management closed an $8.5 billion asset-based finance fund.