New industry research by the Alternative Credit Council (ACC), the private credit affiliate of the Alternative Investment Management Association (AIMA), and global law firm Dechert, reveals that as the private credit market matures, managers are refining their fund structures to meet rising investor demands for liquidity, co-investment and bespoke solutions.

The report, 'Trends in Private Credit Fund Structuring 2025' is the second edition of ACC/Dechert's research – updating the 2023 report – into this market theme and delves into the key drivers behind the development of more customized fund structures for institutional, retail, and insurance investors. 

The findings of this report are drawn from data and insights from 50 private credit managers managing ~ US$1.5 trillion in private credit assets and a series of one-on-one interviews with industry leaders.

Key findings include:

• Investor appetite for co-investment has surged: 92% of managers report an increase in investor demand for co-investment (up from ~70% in 2023).
  
  
• Investor demand for liquidity is rising: 64% of respondents report rising investor demand for liquidity (up from 49% in 2023), with two-thirds of managers surveyed now having at least one vehicle offering investors some form of periodic redemption (up from around half in 2023).
  
  
• Leverage usage remains modest and targeted: 72% of managers employ some leverage (typically 1.0-1.5× NAV) in their private credit strategy, either at the fund or asset level.
  
  
• Growing retail participation: Over 50% of managers currently serve high-net-worth or other retail clients; two-thirds are targeting retail capital for new funds.
  
  
• Insurance allocations: Rated note feeders are increasingly used as a structuring tool for insurance capital, with 63% of managers having considered them for US insurers, 35% for European and Asian insurers.
  
  
• Trusted domicile choices: Luxembourg, Cayman, the US and Ireland remain the top domiciles, with many managers running parallel vehicles to address investor preferences.
  
  
• Fee innovation: Approximately two-thirds of respondents use tiered management fee schedules and continue to innovate fee models in response to competitive fundraising pressures.

Global Head of the ACC Jirí Król, said: "Our new research shows the importance of structuring for investors in private credit – adding value while also allowing investors to tailor their exposure and manage risks. Investor demand for liquidity and co-investment is being met by private credit managers who take the same long-term outlook to their product design as they do to their investments." 

Commenting on the findings, Arina Lekhel, Partner at Dechert, said: "Our 2025 study underscores private credit's evolution into a truly bespoke asset class. Managers are innovating with evergreen and hybrid vehicles, rated note feeders for insurance allocations, targeted leverage and tiered fee models to deliver the periodic liquidity and co-investment features investors now demand, all while preserving the stable, income-driven profile that defines private credit."

Read the full report here.