For most of its history, private credit — lending done outside the traditional banking system — was effectively reserved for banks and large institutions; individuals rarely had a way in. Two things changed: banks pulled back from wide swaths of business and commercial-real-estate lending after 2019, and the non-bank lending that filled the gap grew into a $1 trillion-plus asset class. As it matured, more of it became accessible beyond the institutions that once had it to themselves.
Why it was institutional: private lending is relationship- and expertise-heavy — sourcing deals, underwriting complex situations, structuring collateral, and managing loans through to repayment. That infrastructure historically sat inside banks and large funds, and access was largely closed to everyone else.
What changed on the supply side: since 2019, bank approval rates for small businesses have fallen sharply and banks have exited whole categories of commercial real estate. Creditworthy borrowers didn't disappear — they moved to private lenders, and the capital followed.
What changed on the access side: as private credit grew into a mainstream, trillion-dollar asset class, the ways to understand and participate in it broadened. It's still nuanced, still requires real diligence, and still isn't right for everyone — but it's no longer a world only institutions can see into.
A plain note: at BuildUp, we work in this space every day, and we're always glad to explain how the asset class works — plainly, from a real person. Educational only — this isn't an offer to buy or sell any security, and it isn't investment advice. All investing involves risk.
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