The macroeconomic environment and increasing competition from other private credit companies are considered to be the top risks facing senior executives in the industry, a special study conducted Another Credit Investor he revealed.
The study, conducted at the Alternative Credit Investor COO Summit 2026 last month, found that the two risks are tied for the top, followed by concerns about deteriorating credit quality.
These factors are cited as bigger headwinds than other potential challenges, including reputational risk, increased competition from banks, interest rate conditions and stricter regulation.
The survey also showed that the majority of CEOs expect pay rates to increase over the next 12 months.
Commenting on the survey results, Simon Tang, head of US at Carta LP portfolio analytics, said ACI that the findings highlight “how challenging the current situation is with private debt”.
“The industry is facing political, macroeconomic and competitive conditions, as it faces a shift towards capital,” Tang said. “To continue its growth trajectory, private credit must strengthen transparency in risks, structures and operations and in educating investors about financing and recovery rights.”
Read more: Alternative Credit Investor Summit 2026: Watch the video!
Regarding the macroeconomic situation, senior officials told ACI that market uncertainty remains one of the key challenges they face, most of which is driven by political instability.
This is related to recent discussions between management and ACI. For example, an emerging manager in the process of raising money for his first private debt fund said that, following the start of the war in Iran, institutional investors were slow to make money and delayed decisions because of the uncertainty created.
This, coupled with concerns about the impact of artificial intelligence (AI) on software companies and fears about the deterioration of credit quality, has created another concern for new investors that has become a problem for the performance of private credit companies.
Commenting on macroeconomic conditions, competition and credit quality as the top risks highlighted in the study, Raluca Pop, senior vice president of global sales at TresVista, said. ACI that the findings are consistent with what the company is seeing across its customer base.
“Firms are responding by sharpening their analytical infrastructure with more frequent portfolio reviews, tighter valuations and greater rigor around credit monitoring,” he said. “Companies that are tapping into this resource are the ones that have invested to capitalize on it before the cycle turns.”
However, some executives in the industry pointed out that the current macroeconomic environment creates opportunities, especially for distressed debt.
Even better, the survey also revealed that, despite concerns about the future of the software industry and the growing exemptions among US business development companies, the majority of respondents (86 percent) believe that the wealth channel has a future in other debt.
Read more: Inside the ACI COO Summit: AI, governance and operational change
The road to AI
AI emerged as one of the defining themes of the conference, with ACIs survey showing the same trend. The majority of respondents (83 percent) said they believe AI will be moderately or extremely beneficial to their business going forward.
“With 83 percent of executives also seeing AI as a benefit to their businesses, this technology is key to improving transparency in the industry,” Tang said. ACI. “In a market that is becoming more complex by the day, sending AI data analysis and unstructured documents to private credit will provide our limited partners with consistent data information when they are offered private credit, enabling them to more accurately assess exposure and make informed investment decisions.”
However, 100 percent of the operating managers surveyed believe that technology will reduce the workload of other liabilities.
This article originally appeared in the June issue of Alternative Credit Investor.
