The rapid growth of private credit lending beyond its traditional markets highlights concerns about its opaque nature and potential risks to the U.S. economy, according to Moody's. Non-bank private credit lenders are increasingly competing with traditional banks by offering non-publicly traded debt to mid-sized corporate borrowers. 

This trend has expanded into alternative lending opportunities such as asset-based financing. Despite banks refinancing significant debt and providing leveraged loans for M&A deals, private credit lenders are finding new opportunities. 

Regulators and the IMF have expressed concerns about the potential risks and lack of transparency in this growing market. Four major alternative asset managers have significantly increased their credit assets under management, further highlighting the sector's rapid expansion.

Finsum: We probably aren’t close to a regulation overhaul with private credit but transparency is worth considering.