Private Credit: What Do We Know?

This review article surveys the rapid growth of private credit markets and synthesizes the emerging academic literature on the sector. Ivashina structures the discussion around three core themes: the distinct economic role of private credit, the macroeconomic implications of expanding private debt markets, and the performance of private credit as an asset class. The article reviews evidence regarding the relationship between banks and private credit providers, the interaction between monetary policy and private debt markets, underwriting standards, and the historical evolution of high-yield lending. The paper situates private credit within the broader development of private equity and alternative finance.