The private credit market is expected to grow by up to $300bn (£220bn) by 2030, according to new research by Wealth Club.

The investment service provider said that 55 per cent of fund managers surveyed think the private credit industry will grow from $1.5tn in 2024 to between £1.7tn and $1.8tn by the end of this decade.

Meanwhile, the majority of fund managers (90 per cent) think that annualised returns from private credit funds will increase over the next five years, will the other 10 per cent think it will stay the same.

Direct lending will be the most successful in attracting funds from retail investors who are interested in investing in private credit, according to 60 per cent of fund managers surveyed, while the remaining 40 per cent opted for alternative strategies.

In total, 35 per cent of fund managers said that they had between 5 per cent and 10 per cent of their own investments in private credit.

“Private credit’s forecast $300bn expansion by 2030 isn’t just growth, it’s a structural reallocation of capital,” said Alex Davies, chief executive of Wealth Club. “As institutional and personal capital from fund managers themselves continues to flow in, private credit is moving from a niche allocation to a core building block in modern portfolio

construction.”