Private credit markets are not facing a crisis, but industry participants are paying closer attention to how returns are generated, valued and reported as the asset class expands beyond institutional investors, according to new research released by fund services provider Ocorian.
The findings suggest that while demand for private credit remains strong, investors are increasingly focused on liquidity structures, payment-in-kind (PIK) financing, valuation methodologies and operational reporting systems as managers seek capital from a broader range of wealth-management and retirement investors.
Ocorian’s research found that 63% of respondents expect hybrid or perpetual fund structures with redemption gates to be among the most common new product launches over the next two years. More than half also expect growth in evergreen and semi-liquid fund structures, reflecting continued demand for investment vehicles that offer some access to liquidity despite holding largely illiquid assets.
The report argues that liquidity management, rather than borrower defaults, is becoming a key area of focus. While managers can control redemption terms and access provisions, the underlying private credit assets remain difficult to sell quickly during periods of market stress.
The research also highlighted growing attention to payment-in-kind financing arrangements, under which borrowers can satisfy interest obligations with additional debt rather than cash. Ocorian said PIK structures are not necessarily a sign of trouble when established at the outset of a loan, but noted that mid-loan conversions from cash interest payments to PIK arrangements may indicate financial pressure on borrowers.
According to the survey, 86% of respondents expect the use of PIK features in private credit portfolios to increase during the next two years. At the same time, 89% agreed that greater reliance on PIK arrangements could obscure underlying borrower stress by delaying recognition of repayment difficulties.
Valuation practices were identified as another area of increasing investor scrutiny. More than half of survey respondents said valuation methodology is now the most important risk factor examined during investor due diligence, outpacing concerns about portfolio concentration and liquidity mismatches.
The report also pointed to operational challenges as private credit strategies become more complex. Only 17% of respondents said they have fully automated systems capable of accounting for PIK structures in waterfall calculations, while many reported relying on manual processes, external service providers or partial automation.
Ocorian said the industry’s next phase of growth is likely to depend not only on investment performance but also on managers’ ability to provide transparent reporting, timely valuations and clear evidence of underlying portfolio conditions.
The report cited Blue Owl Capital as an example of how large-scale private credit managers are bringing these issues into sharper focus as the market evolves and attracts a wider investor base.
Ocorian commissioned independent research firm PureProfile in May 2026 to survey 300 senior executives at private capital firms across the United States and Europe. The firms represented a combined $3.5 trillion in assets under management.
