“Looking ahead, we expect private debt AUM to double by the end of the decade,” DBRS said, with future growth powered by greater allocations from retail investors. The U.S. administration is also championing easier access to alternative assets — including private debt, equity and crypto — for retail investors. Compared with syndicated loan investments, private credit has historically produced a yield premium of about 100 to 200 basis points, it noted. Rising transparency in asset valuation could also reduce the private debt premium as funds expand their use of mark-to-market pricing amid increased retail participation. “Ultimately, we believe the private credit premium over broadly syndicated loans will decline over the longer term, but the emergence of individual investors in private credit is just beginning,” it said.