The Kroll StepStone Private Credit Benchmarks illustrate private credit stability heading into 2026
Private Credit Indicators*
5.02x
Valuation
Leverage
Interest Coverage
2.19x
EBITDA Margin
21.8%
Heading into 2026 we can observe that:
Pricing: Spreads remain tight
Profitability: EBITDA margins trending up
Leverage: Trending down
Interest Coverage: Trending up
These factors tell us that private credit remains stable heading into 2026.
Source: Kroll StepStone Private Capital Benchmarks Global New Issues
Deal Advisory
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M&A momentum and delayed exits in 2025 pave the way for a potentially active 2026
Deal Value
2025* deal value
jumped 12.3%
vs. 2024 due to mega-deals.
$4.122 Trillion
Deal Count
Increased Alternative Exits
Dividend Recapitalizations
Insight: While alternative exits increased in 2025—indicating pent-up demand as firms wait for a traditional exit—already improving market conditions, driven by lower interest rates, spurred increased M&A activity in late 2025 and suggest a resurgence in 2026.
Increased
in 2025 vs. 2024.*
12.1%
Continuation Fund Exits
2025* deal count surged in the second half of the year as Q3 marked the strongest quarter for M&A activity since Q4 2021.
43,919
Increased over
in 2025 vs. 2024.**
7.2%
Source: PitchBook
Cyber and AI risk concerns permeate into 2026 amid rapid technological development
Cyber Risk and Investment
AI-Related Security Incidents
Over Three-Quarters
of businesses experienced a security incident involving AI models in the past 24 months.
49%
of organizations are investing in AI solutions and increasing their cybersecurity budgets in the next few years.
Opportunity: The rapid expansion of AI necessitates ever-stringent cybersecurity measures—both proactive and reactive.
Top/Core Risk: Over
90%
of businesses rate
cybersecurity as a top or core risk.
Budget Increase:
79%
68%
of businesses increased their cyber
their cyber budget in 2025 at an average of 15%.
cyber attacks and data breaches are the biggest factor behind an expected increase in financial crime risk.
Sources: Upcoming 2026 Cyber Resilience Survey;
of businesses believe that cyberattacks and data breaches
A tightening spread—currently
bps
indicates a decrease in credit risk
—is a positive sign for creditworthiness
—indicates increased earnings
Increasing interest coverage—currently
with stable expenses
Primarily rising EBITDA margins—presently
495
21.8%
2.19x
*Year-to-date through 12/31/2025
**Year-to-date through 10/31/2025
*as of 12/08/25
Source: Kroll StepStone Private Capital Benchmarks
Source: Kroll StepStone Private Capital Benchmarks
2025 Financial Crime Report
indicates a decrease in credit risk
—is a positive sign for creditworthiness
Increasing interest coverage—currently
Protection
2025 Deal Count and Deal Value figures are still being finalized and are subject to change
*Year-to-date through 12/31/2025
*Year-to-date through 12/31/2025
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