A weaker US greenback has weighed on asset development for Europe’s different managers, regardless of a pointy rise in fundraising within the first half of 2025.

Evaluation by Moody’s Scores tracked six European different asset managers with a mixed €631bn (£550.5bn) in property beneath administration (AUM) on the finish of the primary half of 2025, up two per cent in contrast with six months earlier.

Fund inflows rose to €54bn over the interval, however foreign money headwinds from a softer greenback largely offset the positive aspects, as a number of corporations report within the US foreign money.

Realisation ranges had been flat at €13bn, whereas valuations rose general. Working income had been unchanged within the yr to June 2025 as rising working prices marginally outpaced development in recurring payment income, Moody’s stated.

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Regardless of this, non-public credit score inside different asset managers’ portfolios has been rising quickly lately, accounting for 20 per cent of their holdings within the first half of 2025, Moody’s stated. In fundraising, €19bn was raised for personal credit score within the 12 months to mid-2025.

The examine discovered that whereas non-public fairness remained the biggest asset class, making up round 50 per cent of whole AUM, non-public credit score has expanded at a quicker tempo.

“Personal credit score is rising resulting from a number of structural tailwinds,” Will Eager-Tomlinson vice chairman, senior analyst at Moody’s Scores informed Different Credit score Investor. “Regulatory constraints have decreased banks’ lending capability, creating area for different managers to step in. Personal lenders supply quicker execution, better certainty, and tailor-made phrases, making them engaging to sponsors and debtors.”

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In response to Moody’s, non-public credit score has elevated as a share of buyers’ portfolios from 16 per cent in 2022 to twenty per cent within the first half of 2025.

The company stated non-public markets proceed to develop as buyers rebalance portfolios amid geopolitical uncertainty. Different managers are positioning themselves to satisfy demand for long-term themes together with inexperienced infrastructure, life sciences, know-how and personal credit score.

Moody’s added that managers are additionally increasing autos resembling European Lengthy-Time period Funding Funds (ELTIFs) and Lengthy-Time period Asset Funds (LTAFs), which spend money on illiquid property resembling non-public debt, because the pool of other asset buyers widens.

Eager-Tomlinson added: “Many asset managers have expanded their non-public credit score groups, together with by acquisitions. Demand can also be being pushed by the ‘retailisation’ of personal property, supported by beneficial regulation and political sentiment. Autos like ELTIFs and LTAFs are gaining traction, with insurers and asset managers partnering to supply them by financial savings merchandise resembling unit-linked insurance policies and office pensions.”

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