Private Credit 3.0 — New Rules, New Risks, New Roles

📰 Welcome to career.credit
Good morning!

Private Credit is maturing and with maturity comes both opportunity and caution.

This week’s headlines highlight the accelerating convergence of private and public debt markets, big-picture M&A moves in asset management, and a notable warning from Jeff Gundlach that has everyone paying closer attention.

We’re also digging into one of the most important hiring themes of 2025 (the battle for Associate-level talent) and a Deep Dive on fundraising fatigue across the industry.

Let’s get into it.

🏦 This Week’s Private Credit Headlines

📉 Gundlach’s Warning: “Feels Like 2006”
Jeffrey Gundlach, the so-called Bond King, issued a rare warning on the state of private credit. Speaking on Bloomberg, he compared current conditions to the lead-up to the 2008 crisis: rising illiquidity, stretched valuations, and overly optimistic underwriting.

His key message?

For deal teams, CIOs, and LPs, this is a reminder that risk management is back on the menu.

🌐 Credit 3.0: Private Meets Public
We’re entering what Apollo calls the “Credit 3.0” era - where the distinction between private and public credit continues to blur.

Key markers of this shift:
🔹 Broader investor bases tapping into bespoke credit
🔹 Sponsors structuring hybrid instruments across liquid and illiquid markets
🔹 Firms scaling platform offerings to stay competitive in both spheres

This is about convergence, and it’s reshaping what skill sets platforms need.

📊 M&A Heats Up in Asset Management
According to Pensions & Investments, private credit is still the brightest spot in asset manager M&A, especially for international players looking to expand.

💡 Key drivers:

• Access to sticky AUM

• Diversification away from public equities

• Higher-margin credit products

Expect continued roll-ups, JV announcements, and regional platform launches as managers race to stay relevant.

💼 Career Insights: The Associate Squeeze
We’ve been recruiting across multiple mid-market and large-cap credit platforms this year and one thing is clear:

The demand for strong Associates is at an all-time high.

In 2025 so far:

• 90% of top Associate candidates have had 3+ live processes at once

• Time-to-offer is shrinking, firms are moving faster than ever

• Counter-offers are back, and they’re aggressive

For clients, this means tightening hiring processes and pre-closing candidates earlier.
For candidates, this means tough choices and making sure you’re not choosing based on comp alone.

Need help navigating an offer? Reach out, we’re here to support.

🧠 Deep Dive: Fundraising Fatigue Is Real
PitchBook’s latest data shows that after a record run, private credit fundraising is cooling off.

📉 Total funds raised are down YoY
📉 Mega-fund closings are fewer and further between
📉 LPs are being more selective and stretching out deployment timelines

But don’t mistake this for a downturn. It’s a rebalancing.

LPs are consolidating relationships with the best-performing managers, making track record and strategy clarity more important than ever.

For talent, this means:
✅ Stick close to GPs with differentiated offerings
✅ Prioritise firms with active mandates and strong deployment pipelines
✅ Be prepared for leaner, more efficient teams — especially at the junior-mid levels

💬 Final Thought
We’re entering a more disciplined, more competitive phase in private credit.

The firms (and careers) that thrive in this next cycle will be those that:
🔹 Embrace platform evolution
🔹 Move quickly on talent
🔹 Don’t forget the fundamentals

We’ll see you Tuesday with a subscriber-exclusive resource.

— James
Founder, career.credit & Futura Search Partners