The G7 highlighted risks in private credit markets, pointing to liquidity gaps and complexity. The French presidency urged closer monitoring as the sector grows.
G7 highlights private credit market risks
The French presidency of the G7 released a statement on October 23, 2026, pointing out weaknesses in the private credit market, such as liquidity gaps, lack of transparency, and the complexity of financial structures. The statement was a result of a technical workshop held earlier that month with financial regulators and market experts.Workshop discusses private credit challenges
The workshop, organized on September 30 by the French presidency with the Bank of France and the Autorité des marchés financiers (AMF), brought together representatives from financial authorities, market participants, and the Financial Stability Board (FSB). Discussions focused on financing methods, asset valuation, and the growing involvement of individual investors in private credit.Liquidity issues in private credit funds
The G7 noted that some investment vehicles in private credit suffer from liquidity asymmetries, meaning loans can be hard to sell quickly, while shareholders may have options for repurchase. The statement stressed the importance of understanding the connections between these funds and other financial actors, though it emphasized that the problems identified are not yet systemic.Private credit and its growing role
Private credit involves providing loans directly to companies through fund managers rather than through public markets. While this can meet specific financing needs, the lack of a deep secondary market for some loans makes it harder to value and sell them. A 2026 report by the FSB estimated global private credit assets to be between $1.5 and $2 trillion as of the end of 2024.Regulators warn of risks for individual investors
The AMF highlighted in its 2026 risk map that the rise of private assets and their increasing availability to individual investors requires careful attention to liquidity, valuation, and debt. Investors in funds tied to non-listed loans should look closely at contractual details, including how often they can sell their shares and the terms of any repayment options.
