KBRA Releases Research – Private Credit: Asset Managers 1Q26 Performance Recap—Credit Strength Through Volatility

NEW YORK--(BUSINESS WIRE)--#creditratingagency--KBRA releases research that summarizes key quarterly performance trends and thematic takeaways across publicly traded North American and European alternative asset managers, as well as the latest key performance metrics for KBRA’s rated universe of 67 asset managers.

Key Takeaways

• Leading North American and European alternative asset managers reported generally resilient 1Q26 results despite continued macroeconomic uncertainty, market volatility, and a still-uneven realization environment. Performance across the sector reflected the durability of fee-related earnings (FRE) and generally resilient fundraising and deployment activity, particularly within private credit, insurance, and private wealth channels, despite ongoing liquidity pressures in private markets. Various managers cited attractive opportunities for differentiated investing created by market dislocation.
• FRE growth across the sector continued to benefit from overall assets under management (AUM) expansion, increased perpetual capital, and continued momentum in retail and private wealth fundraising channels, despite higher redemption activity within certain wealth management products. Firms generally maintained a constructive medium-term view for realizations, noting significant embedded unrealized value and improving transaction pipelines.
• Credit, infrastructure, insurance-related strategies, and private wealth channels continued to represent some of the strongest areas of fundraising activity during the first quarter, with retail fundraising remaining a meaningful driver of AUM growth and earnings diversification. Redemption risk remains well contained, with the bulk of AUM in durable fund structures with no redemption risk.
• Credit-related commentary by management teams focused on underwriting discipline, particularly with respect to software and artificial intelligence (AI)-related exposures, as well as maintaining exposure to higher-quality credits relative to more vulnerable segments of the direct lending market.
• Overall, the sector continues to evolve from traditional private equity (PE) franchises into increasingly diversified alternatives platforms, with growth being driven by private credit, infrastructure, real assets, secondaries, evergreen vehicles, and expanding private wealth distribution channels.
• KBRA’s rated universe has expanded since 2019 to nearly 70 asset managers globally, spanning PE and private credit, as well as real estate, infrastructure, and wealth management firms, with ratings ranging from AA to below-investment-grade categories. About one-fifth of our rated portfolio encompasses managers based outside the U.S. (primarily Europe). Despite a more demanding environment with increasing visible dispersion, performance among KBRA-rated managers has remained resilient. We continue to monitor risk discipline, infrastructure, AI-related uncertainty, and redemption risk, but we expect these risks to generally remain contained within the rated portfolio.

Click here to view the report.

Recent Publications

• Private Credit: Q1 2026 Middle Market Compendium: Stability Despite March Madness
• Private Credit: Business Development Company (BDC) Ratings Compendium: Fourth-Quarter 2025
• Private Credit: Deep Dive on AI and Software
• Private Credit: Asset Managers in Focus Webinar Recap
• Private Credit: From Acquisitions to Partnerships—Asset Managers’ Growing Role With Life/Annuity Insurers
• Private Credit: KBRA-Rated Private Equity and Private Credit Firms Demonstrate Resilience Through Market Challenges

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

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Leah Hallfors, Senior Director
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