BlackRock’s increased emphasis on private credit reflects a broader reallocation of institutional capital toward non-bank lending strategies. In January 2026, BlackRock and Partners Group announced the launch of a multi-alternatives separately managed account designed to provide streamlined access to private markets, including private credit. BlackRock currently manages approximately $190Bn in private credit assets, positioning the firm among the largest global participants in the asset class.
BlackRock and Partners Group SMA Launch
The newly launched private market separately managed account (SMA) offers diversified exposure to private equity, private credit and real assets through seven underlying evergreen strategies managed by BlackRock, HPS and Partners Group. The structure consolidates multiple strategies under a single subscription framework and is initially being distributed through the Morgan Stanley wealth platform. Three portfolio profiles — income-focused, balanced and growth — are designed to align with varying client objectives while reducing operational complexity.
BlackRock has more than four decades of experience managing SMAs and oversees over $250Bn in assets across its platform. Partners Group manages approximately $185Bn globally and brings a long track record in evergreen private market vehicles. Advisor surveys indicate growing demand for private asset exposure, though adoption has historically been constrained by education gaps and implementation complexity.
2026 Market Outlook and Trends
Private credit is entering into 2026 within a more challenging credit environment compared to recent years. According to Fitch Ratings, trailing 12-month default rates reached 5.7% as of November 2025. At the same time, BlackRock has indicated that credit conditions across its portfolios remain generally stable, with approximately $25Bn deployed into private markets during 2025.
Wealth-channel allocations continue to favor evergreen fund structures. Assets held in evergreen private credit vehicles reached approximately $644Bn as of mid-2025, driven largely by BDCs, interval funds and European semi-liquid structures. Regulatory developments, including the implementation of ELTIF 2.0, have supported increased distribution across European markets.
Institutional Demand and Structural Drivers
Institutional investors accounted for more than half of U.S. private credit fundraising in 2024. Structural drivers include constrained bank lending, regulatory capital requirements and the growing prevalence of privately held companies. Across the U.S., EU and UK, more than 90.0% of companies with revenue exceeding $100MM remain privately owned, supporting sustained demand for alternative financing solutions.
Private credit fundraising exceeded $220Bn in 2025, with continued participation from pension funds, insurance companies and sovereign investors. The asset class has increasingly been positioned as a core portfolio allocation rather than a tactical supplement.
Bank Partnerships and Platform Integration
The convergence of banks and private credit managers has produced new partnership models. Major institutions have launched joint lending platforms, co-investment programs and dedicated private financing units. BlackRock’s Private Financing Solutions platform integrates private credit, GP and LP solutions and CLO strategies alongside its $3.0Tn public fixed income franchise.
Conclusion
BlackRock’s continued expansion in private credit reflects sustained institutional and wealth-channel demand for alternative lending strategies. As investors adopt more integrated portfolio frameworks spanning public and private assets, private credit remains positioned as a central component of capital allocation strategies.
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