Private Credit's Consumer Lending Push | A $136 Billion Bet

Private credit firms have dramatically accelerated their purchases of consumer debt, acquiring or committing to $136 billion in consumer loans in 2025 compared to just $10 billion in 2024—a nearly 14-fold increase. Major players including KKR, Blue Owl, and Sixth Street are expanding into credit cards, buy now pay later (BNPL) loans, and other unsecured household debt. This shift reflects both an opportunity created by bank retrenchment due to stricter capital requirements and growing appetite for asset-based finance strategies. However, the rapid expansion raises questions about underwriting standards and how these portfolios might perform during an economic downturn.