Private Credit

The private credit industry has experienced significant growth over the past decade, evolving into a critical component of the global financial system.

The asset class exceeded $2 trillion in AUM during 2024 and is expected to exceed $3 trillion over the coming years, driven by the retrenchment of traditional banks from leveraged lending and the ongoing expansion of the credit businesses of private equity firms.

From a European perspective, AIFMD 2.0 will introduce a pan-European loan origination framework for the first time, levelling the playing field for EU domiciled funds, which is expected to eliminate current cross border direct lending barriers. In tandem with this, the democratisation of alternative investment strategies and resultant demand for evergreen / hybrid type strategies is expected to drive the continued growth of the private credit industry.

Jorge Fernandez Revilla

Partner, Head of Asset Management

KPMG in Ireland

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Ireland for credit: the ICAV

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Irish Corporate Lending

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Spotlight on tax considerations for alternative investment funds

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How KPMG can help

Our multidisciplinary team of experts across audit, tax, consulting and deal advisory are able to advise you across the full life cycle and value chain, irrespective of whether you are an asset manager, service provider or investor. We work on a global basis – working closely with credit experts in key jurisdictions such as the UK, Luxembourg and the US to bring a global solution.

We have expertise in respect the full range of strategies which form part of private credit:

Private credit strategies 01 Direct lending 02 Distressed debt/NPLs 03 Mezzanine debt 04 Special solutions 05 Asset backed lending & esoteric credit

Our teams have deep industry knowledge and access to a global network of professionals, ensuring that we provide comprehensive insights and solutions tailored to the evolving credit landscape. Here is a quick look at our services in this space:

Fund structuring

Fund formation – tax structuring
Carried interest planning
Accounting advisory
Regulatory advice
Target operating model

Life cycle

Tax compliance
Audit
Transfer pricing
Valuations
Entity / structure rationalisation
Value creation

Investment approach

Due diligence – tax, legal, ESG & commercial
Portfolio solutions
Debt advisory
Transaction review
Tax structuring
Turnaround & restructuring solutions
Workout solutions
Cash flow / financial monitoring and modelling

Exit

Tax structuring
Pre-sale readiness assistance
Restructuring / advisory
Insolvency / liquidation

Talking Asset Management with KPMG: podcast series

Asset managers are facing an environment of enormous challenges and opportunities. Listen to the KPMG US Talking Asset Management podcast series as our colleagues break down regulatory updates; economic, operational, and valuation challenges; potential tax implications taking place today; and other hot topics affecting the Asset Management industry.

Private Credit Perspectives: Ireland

In this episode, Philip Murphy delves into the challenges and opportunities in the private credit environment including why Irish ICAVs have emerged as a vehicle of choice for strategies such as US direct lending and royalty strucures.

Private Credit Perspectives: Luxembourg

In this episode of Talking Asset Management with KPMG, Patrick Brooks, Credit Tax practice leader, hosts a conversation with a leader from KPMG Luxembourg to discuss the current state of the private credit landscape in the region.

Private Credit Perspectives: United Kingdom

Listen to Scott Woods, Michael Bolan and Simon Hart discuss the current state of the private credit landscape in the United Kingdom.

Private Credit Perspectives: Germany

Listen to Patrick Brooks, Julius Groten & Marco Muth discuss the current state of the private credit landscape in Germany.

Get in touch

Find out how KPMG's fresh perspectives and expertise help you focus on what's next for your business. Reach out to our team of credit specialists today to discuss any queries you might have in the context of a credit strategy – we'd be delighted to guide you.