As the year begins to gather pace, early signals across global private credit markets suggest that 2026 will not be defined by the availability of capital alone—reflected in sustained fundraising, refinancing activity, and evolving lender discipline—but by how selectively and strategically that capital is deployed.
January is often a month of reflection and preparation. February, however, is where direction begins to take shape. Across regions and sectors, private credit is showing resilience, disciplined growth, and an increasingly differentiated approach to risk and opportunity. For businesses considering funding this year, the message is becoming clearer: capital is moving, but it is moving with intent.
Institutional confidence in private credit continues to hold firm entering 2026, reflected in sustained global fundraising momentum, expanding investor allocations, and a growing role for private lenders in both refinancing cycles and growth financing. Recent industry outlooks suggest private credit remains one of the few asset classes where deployment capacity and investor demand are rising in tandem, even as broader financing markets adjust to evolving rate expectations.
Yet resilience is increasingly paired with selectivity. Rather than pursuing volume, lenders are tightening underwriting frameworks, placing greater analytical weight on forward cash-flow visibility, governance maturity, and clearly articulated strategic use of capital. In practical terms, capital is available — but conviction is being earned through preparation and transparency.
Regional dynamics reinforce this disciplined expansion:
United Kingdom & Europe – Mid-market lending remains active, but scrutiny around reporting quality, covenant protection, and downside resilience has intensified, signalling a broader shift toward risk-adjusted deployment rather than rapid balance-sheet growth.
APAC – Private credit participation is widening across growth-oriented mid-market businesses, supported by rising cross-border capital flows and the continued emergence of structuring hubs such as Singapore and Hong Kong as regional financing gateways.
United States – The world’s largest private credit market continues to absorb significant refinancing demand as maturity walls from earlier low-rate vintages approach. Pricing dynamics are also stabilising as direct lenders compete more actively with syndicated loan markets for high-quality borrowers.
Taken together, these indicators describe a market that is not slowing, but maturing — active in deployment, disciplined in underwriting, and increasingly differentiated by borrower quality rather than capital scarcity.
Explore our recent deal activity
Our Market Pulse 2026 webinar series is bringing founders, CFOs, and investors into a shared conversation about how private credit conditions are evolving across regions—and what borrowers must do differently in response.
In our recently hosted APAC Market Pulse 2026: Private Credit Trends, Funding Conditions, and Borrower Playbooks, discussions focused on navigating a fragmented regional landscape, understanding shifting lender priorities, and approaching debt with greater clarity and speed. A key takeaway was that preparation, structure, and regional nuance are increasingly decisive in securing successful funding outcomes across Asia-Pacific markets.
Across the UK and Europe, our latest Market Pulse 2026 session provided a practical, on-the-ground view of lender behaviour, evolving deal structures, and what finance leaders must demonstrate behind the credit committee door—helping founders and CFOs make confident decisions on structure, timing, and lender fit in an increasingly disciplined, lender-led environment.
Across both regions, one theme continues to surface: clarity before capital. Businesses entering funding conversations with well-defined narratives, credible forecasts, and aligned stakeholders are progressing faster—and securing more flexible outcomes.
Watch the latest webinar recording
One of the most consequential forces shaping 2026 is the convergence of a substantial refinancing pipeline with renewed demand for fresh growth capital. A meaningful portion of debt raised during the prior low-rate cycle is now approaching maturity, bringing more businesses back to market at a time when lenders are underwriting against higher base rates, tighter risk tolerance, and more rigorous scenario analysis.
This dynamic does not indicate a shortage of capital. Instead, it is creating a clearer separation between:
• Businesses that are technically fundable
• Businesses that are institutionally prepared for credit scrutiny
As refinancing demand begins to test deployment capacity, lender discipline is translating directly into structure, pricing, and certainty of execution. Greater weight is being placed on forward cash-flow resilience, downside protection, covenant design, and well-evidenced repayment pathways across multiple operating scenarios. Transactions supported by credible data and governance maturity continue to clear efficiently, while less prepared borrowers face longer timelines and reduced structural flexibility.
In this environment, preparation is no longer defensive positioning—it is pricing power and execution certainty.
Within Fuse Capital Group, our approach reflects the diversity of today’s funding landscape.
Fuse Capital partners with high-growth and complex businesses seeking structured capital for expansion, acquisitions, and strategic transformation, drawing on a global institutional lender network.
Quest Advisory, our sister concern, focuses on owner-managed businesses, providing hands-on guidance, practical debt solutions, and funding pathways that support growth without diluting ownership.
Different journeys. Shared philosophy. Capital structured around what the business truly needs.
Observations from World Summit AI 2025, where Fuse Capital Group engaged with global enterprise and technology leaders, revealed a clear pattern across enterprise case studies and founder discussions: while artificial intelligence is becoming universal, the way companies deploy it is creating fundamentally different growth paths — and increasingly, different capital needs.
A growing divide is forming between AI-native businesses, built around AI from inception, and AI-adopting organisations integrating AI into existing operations.
Lenders and investors are now evaluating:
• The durability and scalability of AI-driven revenues
• Capital efficiency and the path to sustainable cash flow
• Integration risk versus operational transformation
• Whether growth is being funded with the right type of capital
For many businesses, the risk is no longer choosing the wrong AI strategy — but funding the right strategy with the wrong capital structure.
As this distinction sharpens, underwriting appetite, valuation resilience, and structural flexibility across technology-enabled sectors are beginning to diverge.
Understanding where a business sits on this spectrum is becoming central to funding conversations in 2026.
Read our full insight on AI-native vs AI-adopting businesses
If January was about clarity, February is revealing momentum.
Private credit remains resilient. Investor appetite is intact. Opportunities are present across regions. Yet conviction is increasingly reserved for businesses that combine preparation, transparency, and strategic intent.
In 2026, success in funding will not belong to those who move fastest, but to those who move best prepared.
At Fuse Capital Group, our work begins well before a transaction. We help businesses shape the narrative, structure the strategy, and connect with the right capital partners—at the right time and on the right terms.
Here’s to a year defined not just by access to capital, but by confidence in how it is used. And for businesses preparing to raise this year, the right conversations are already beginning.
To receive The Funding Outlook each month, subscribe to receive thoughtful private-market intelligence, global funding perspectives, and practical insights delivered directly to your inbox.
You can also revisit our previous editions for a broader view of how 2026 is unfolding across private capital markets.