New research shows private credit fund structuring evolution driven by investor demand for liquidity, customisation, rated notes and co-investment

LONDON, Oct. 6, 2025 /PRNewswire/ -- New industry research by the Alternative Credit Council (ACC), the private credit affiliate of the Alternative Investment Management Association (AIMA), and global law firm Dechert, reveals that as the private credit market matures, managers are refining their fund structures to meet rising investor demands for liquidity, co-investment and bespoke solutions.

The report, 'Trends in Private Credit Fund Structuring 2025' is the second edition of ACC/Dechert's research – updating the 2023 report – into this market theme and delves into the key drivers behind the development of more customised fund structures for institutional, retail, and insurance investors. 

The findings of this report are drawn from data and insights from 50 private credit managers managing ~ U.S.$1.5 trillion in private credit assets and a series of one-on-one interviews with industry leaders.

Key findings include:

• Investor appetite for co-investment has surged: 92% of managers report an increase in investor demand for co-investment (up from ~70% in 2023).
  
  
• Investor demand for liquidity is rising: 64% of respondents report rising investor demand for liquidity (up from 49% in 2023), with two-thirds of managers surveyed now having at least one vehicle offering investors some form of periodic redemption (up from around half in 2023).
  
  
• Leverage usage remains modest and targeted: 72% of managers employ some leverage (typically 1.0-1.5× NAV) in their private credit strategy, either at the fund or asset level.
  
  
• Growing retail participation: Over 50% of managers currently serve high-net-worth or other retail clients; two-thirds are targeting retail capital for new funds.
  
  
• Insurance allocations: Rated note feeders are increasingly used as a structuring tool for insurance capital, with 63% of managers having considered them for U.S. insurers, 35% for European and Asian insurers.
  
  
• Trusted domicile choices: Luxembourg, Cayman, the U.S. and Ireland remain the top domiciles, with many managers running parallel vehicles to address investor preferences.
  
  
• Fee innovation: Approximately two-thirds of respondents use tiered management fee schedules and continue to innovate fee models in response to competitive fundraising pressures.

Global Head of the ACC Jiří Król, said: "Our new research shows the importance of structuring for investors in private credit – adding value while also allowing investors to tailor their exposure and manage risks. Investor demand for liquidity and co-investment is being met by private credit managers who take the same long-term outlook to their product design as they do to their investments." 

Commenting on the findings, Claire Bentley, Partner at Dechert, said: "Effective fund structuring is at the heart of private credit's evolution. Managers who can offer enhanced liquidity, including evergreen vehicles, alongside customised products, flexible fee models and co-investment opportunities are positioning themselves to meet the nuanced demands of institutions, insurers and high-net-worth clients. Our research shows that those who master these tools can expand their investor base without sacrificing the reliable returns that define the asset class."

Read the full report here.

About ACC
The Alternative Credit Council (ACC) is a global body that represents asset management firms in the private credit and direct lending space. It currently represents 250 members that manage over US$2 trillion of private credit assets. 

The ACC is an affiliate of AIMA and is governed by its own board which ultimately reports to the AIMA Council. 

ACC members provide an important source of funding to the economy. They provide finance to mid-market corporates, SMEs, commercial and residential real estate developments, infrastructure as well the trade and receivables business. 

The ACC's core objectives are to provide guidance on policy and regulatory matters, support wider advocacy and educational efforts and generate industry research with the view to strengthening the sector's sustainability and wider economic and financial benefits. 

Alternative credit, private debt or direct lending funds have grown substantially in recent years and are becoming a key segment of the asset management industry. The ACC seeks to explain the value of private credit by highlighting the sector's wider economic and financial stability benefits. 

About AIMA

The Alternative Investment Management Association (AIMA) is the world's largest membership association for alternative investment managers. Its membership has more firms, managing more assets than any other industry body, and through our 10 offices located around the world, we serve over 2,000 members in 60 different countries.

AIMA's mission, which includes that of its private credit affiliate, the Alternative Credit Council (ACC), is to ensure that our industry of hedge funds, private market funds and digital asset funds is always best positioned for success. Success in our industry is defined by its contribution to capital formation, economic growth, and positive outcomes for investors while being able to operate efficiently within appropriate and proportionate regulatory frameworks.

AIMA's many peer groups, events, educational sessions, publications and practical tools like its Due Diligence Questionnaires and industry sound practice guidance available exclusively to members, enable firms to actively refine their business practices, policies, and processes to secure their place in that success.

About Dechert
Dechert is the law firm that helps business leaders lead. For more than 150 years, we have advised clients on critical issues – from high-stakes litigation to first-in-market transaction structures and complex regulatory matters. Our nearly 1,000 lawyers in commercial centres worldwide are immersed in the key sectors we serve – financial services, private capital, real estate, life sciences and technology. Dechert delivers unwavering partnership so our clients can achieve unprecedented results.

About Dechert Private Credit

Private credit has been at the heart of our funds practice for more than 30 years and is a foundational pillar of our fund formation and global finance offering across the U.S., Europe, Asia and the Middle East.

We advise across the full spectrum of private credit strategies, including asset-based lending, direct lending and specialty finance, as well as subordinated debt, distressed and special situations, venture debt and permanent capital vehicles.

More than 80% of Private Debt Investor's Top 100 private credit firms turn to Dechert for fund formation, finance, regulatory, M&A and tax matters across key jurisdictions.

Drawing on the breadth of our cross-disciplinary team, we support hundreds of private credit funds and transactions each year. We are at the centre of the deals driving market momentum and help clients anticipate what's next. Through close collaboration with trade bodies and industry groups worldwide, we navigate regulatory change and help shape the market, giving our clients early insight into the direction of travel.