The Investment Funds Association brings together fund counsel from leading asset managers in the global credit funds industry

We act as a network for leading fund counsel to share best practice and to remain connected to the latest developments in the market
We provide governments and regulators with high quality analysis of their regulatory environment and ideas for innovation
We represent a dynamic industry that started in the USA before becoming established in Europe and that is now growing rapidly in Asia

Contact us to become a member or to find out more about what we do

Connecting leading asset managers in the credit funds industry

The Investment Funds Association brings together fund counsel from leading asset managers in the global credit funds industry.  Since 2008, banks have decreased the proportion of lending to business.  Credit funds have grown in significance to become an important source of finance for small and medium sized businesses seeking capital for growth – a trend that accelerated as banks tightened their focus on existing portfolios in response to the pandemic.

The Investment Funds Association aims to improve understanding of the growing significance of the sector, its role in the growth and success of small and medium sized businesses and approaches to regulation that ensure the sector has high standards of governance and can channel funds to businesses as effectively and efficiently as possible.

We provide governments and regulators with high quality analysis of their regulatory environment in comparison to other jurisdictions and with ideas for improvements or innovation.  We also act as a network for in-house fund counsel to share best practice and to remain connected to the latest developments in the market.

Private Credit Funds

US$ billion AUM

%

Increase in AUM 2006-2020

At 689, the number of private credit funds raising capital is more than double the 265 funds in 2016.

Private Credit AUM totalled $1187 in 2020. Direct Lending is the largest category accounting for 40% of the total.

In 2006 AUM was $139 billion and grew 753% by 2020.

Sources: Preqin and Marquette Associates

At 689, the number of private credit funds raising capital is more than double the 265 funds in 2016.

Private Credit AUM totalled $1187 in 2020. Direct Lending is the largest category accounting for 40% of the total.

%

In 2006 AUM was $139 billion and grew 753% by 2020.

Sources: Preqin and Marquette Associates

Private Credit and the Mid-Market

Since 2008, banks have decreased the proportion of lending to business.   Banks’ share of the leveraged loan market fell by 88% in the USA between 1994 and 2018 and by 72% in the EU between 1999 and 2018.

Credit funds have filled the gap and become an important source of finance and patient capital to help mid-market businesses grow.  HSBC has estimated these businesses account for more than half of total employment in the USA and China and around 40% or more in Germany, Canada, the UK and France.

Credit funds typically commit capital to a company for the duration of the fund (5-8 years). As a result credit funds have an interest in helping businesses navigate a critical stage in their growth and will often develop a close sole-lender relationship which can extend across fund generations.

 

  • China
  • USA
  • Germany
  • UK
  • Canada
  • France

Employment as share of national total.  Sources: S&P Global & HSBC

Our Research

The Investment Funds Association was founded in 2020 in the midst of the Coronavirus Pandemic.  Our research aims to guide fund counsel and regulators through the challenges of the post-Covid economy.  Research is available to our members and to government agencies and regulators on request.

Our Members

Our membership consists of leading fund counsel representing some of the largest asset managers in the industry.  If you would like to know more or have any questions please contact us.

Contact us to become a member or to find out more about what we do

About us

The Investment Funds Association brings together fund counsel from leading asset managers in the global credit funds industry.  Please contact us if you would like to be involved.

Katherine Rainwood

Katherine Rainwood

Co-Chair

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James Wright

James Wright

Co-Chair

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Katherine Rainwood

Katherine Rainwood

Co-Chair

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James Wright

James Wright

Co-Chair

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Investment Funds Association
Lower Ground Floor
One George Yard
London, EC3V 9DF
+44 20 7193 2566

info@privatecreditassociation.com