Federal Reserve Board Staff Research Note: The $1.9 Trillion U.S. Private Credit Market Is Composed of Four Vehicle Types Subject to Different Regulatory Constraints
A research note released by the Federal Reserve Board in November 2026 systematically outlines the institutional structure of the U.S. private credit market using financial accounts data. The four main vehicle types—private debt funds ($940 billion), business development companies (BDCs) ($570 billion), interval and tender offer funds ($290 billion), and middle-market collateralized loan obligations (MM CLOs) ($50 billion)—hold approximately $1.9 trillion in assets combined, but their asset composition, leverage levels, and funding sources vary significantly due to differing regulatory environments. The note points out that this heterogeneity reflects three interrelated factors: regulatory architecture, liquidity obligations, and investor composition.
The U.S. private credit market is often discussed as a monolithic entity, but a research note released by the Federal Reserve Board in November 2026 reveals that the internal structure of this $1.9 trillion market is far more complex than commonly perceived. Although the four primary vehicles—private debt funds (PD funds), business development companies (BDCs), interval and tender offer funds, and middle-market collateralized loan obligations (MM CLOs)—are all categorized under the umbrella of private credit, their balance sheets present distinctly different profiles.
In terms of scale, private debt funds lead with $940 billion in assets, followed by BDCs at $570 billion, interval and tender offer funds at $290 billion, and MM CLOs, which are the smallest at just $50 billion. However, what is truly noteworthy is not the ranking by size, but the significant differences in asset composition. In private debt funds, private credit loans account for only 57% of assets, with the remainder consisting of corporate equities (18%) and debt securities (13%). In interval and tender offer funds, the share of private credit loans is even lower at 26%, while corporate equities account for 44% and debt securities nearly 14%. Conversely, MM CLOs invest exclusively in private credit loans. In other words, among funds labeled as private credit vehicles, some actually hold assets that are largely not private credit loans themselves.