The outlook for private credit remains robust through 2025 and beyond, according to the latest insights from the Stara-backed Corinthia Global Management team.
Private credit platform Corinthia Global Management has identified five key themes shaping the private credit landscape and reinforcing its long-term investment appeal.
The Stara-backed team says one of the most significant shifts has been the evolution away from banks and syndicated lending towards private credit becoming a mainstream, institutional asset class.
With the asset class now estimated at around US$2 trillion, the addressable opportunity – especially in the United States and Europe – could be more than US$30 trillion, once asset-based lending structures are factored in.
Stara Managing Director and Corinthia Executive Chairman Paul Weightman said private credit was moving away from an alternative to becoming the backbone of capital formation in many sectors.
“We are seeing more sophisticated partnerships emerge between asset managers, private equity sponsors and institutions as the market continues to scale,” he said.
One area of continued opportunity is the core middle market, which is often overlooked as larger private credit funds shift toward billion-dollar deals. Corinthia sees strong potential for experienced lenders with deep sponsor relationships to carve out niches in mid-market transactions, particularly in Europe where market segmentation is accelerating.
Corinthia also highlights a shift from pure competition to “coopetition”, as traditional banks and asset managers seek ways to partner with private lenders. From General Partner stakes to joint ventures and fund financing arrangements, the lines between lender types are becoming increasingly blurred.
Another major driver is the improving outlook for deal activity. With greater clarity on interest rates and mounting pressure on private equity to deliver returns, 2025 is expected to see a resurgence in M&A volumes. Research by Deutsche Numis found that in the UK alone, 84% of surveyed private equity professionals expect to complete 5-10 deals this year, while EY-Parthenon has forecast a 16% increase in M&A volume in the US.
Finally, Corinthia sees an attractive risk-adjusted yield environment continuing. Although returns from direct lending may normalise from recent highs, lower leverage levels and the bilateral nature of most private credit deals provide built-in downside protection.
For Stara, which supports Corinthia’s strategic growth, these positive global trends further validate our investment in platforms that respond to long-term structural shifts.
“Corinthia is built to take advantage of these dynamics with experienced people, strong global reach, and a focus on quality origination,” Paul said. “Private credit is not just expanding; it’s evolving and we’re proud to be part of that evolution.”
