Navigating growth and complexity in private credit

Private credit is one of the fastest growing areas of private markets. However, interest rates remain elevated (and look to stay this way for the foreseeable future) and with economic conditions affecting the investment landscape, resilience is more important than ever. For fund managers, the emphasis is on how to scale and how to manage risk, reporting and investor expectations in a more complex environment. 

Growth brings operational pressure 

In 2026, private credit strategies now cover a broad spectrum, from direct lending to opportunistic and distressed credit. Larger portfolios, more complex capital structures and increased use of leverage are creating operational challenges, including: 

• loan monitoring and covenant tracking 
• multi-layer capital structures and waterfall complexity 
• increased valuation frequency and judgement 
• more detailed investor reporting requirements 

Institutional limited partners are also demanding greater transparency around portfolio performance, credit quality and risk exposure. 

Stress signals require stronger governance 

Even in performing portfolios, managers are seeing early warning signs: 

• amend and extend activity increasing 
• greater focus on covenant headroom 
• rising restructuring and workout scenarios 

This environment requires supported governance oversight, clear documentation and the ability to track and report portfolio changes quickly and accurately. 

Managers whose operating models were built for a growth phase may find them under strain as portfolios mature and complexity increases. 

Fund finance and leverage considerations 

The evolution of fund finance, including NAV facilities and non-bank lenders, adds another layer of oversight. Managers need visibility across borrowing levels, collateral positions and investor disclosure obligations. 

This increases the importance of integrated administration, capable of supporting both portfolio monitoring and fund level reporting. 

Scale is not just about AUM 

Institutional investors increasingly assess operational capabilities alongside investment performance. Key questions include: 

• can reporting support institutional standards? 
• is the administrator experienced in credit strategies? 
• can the operating model handle restructurings and complex cash flows? 

For emerging managers in particular, the right administration partner can help meet LP expectations without building a large internal team. 

How Ogier Global can help 

Ogier's corporate and fiduciary services division, Ogier Global, supports private credit fund managers with administration tailored for scale and complexity. Our teams understand loan agency services, governance, reporting and operational requirements of modern credit strategies, helping managers maintain investor confidence as portfolios grow and market conditions evolve. 

About Ogier

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

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