WILMINGTON, DE — Cross-border private credit is on track for rapid global expansion, but growing operational complexity is threatening to slow momentum as investors become more selective and risk-aware.
That is the central finding of a new study from CSC, a global provider of business administration and compliance solutions, which shows a widening gap between the ambitions of fund managers and the tolerance of investors. The report, Private Credit 2025: Global Strategies for a $1.5 Trillion Market, draws on a survey of 500 senior private capital professionals worldwide, including 300 general partners and 200 limited partners.
Nearly eight in 10 general partners expect cross-border private credit activity to grow over the next three years, with more than half predicting a sharp acceleration. Limited partners, however, are signaling caution. Forty percent said they rejected private credit investment opportunities in the past year because of concerns tied to reporting quality, operational controls, or risk transparency.
The disconnect reflects the mounting complexity of operating across jurisdictions. According to the survey, 92% of limited partners are concerned about the operational challenges inherent in cross-border private credit, including inconsistent reporting standards, regulatory fragmentation, and enforcement risks across legal systems.
Bas Coenen, CSC’s head of fund solutions in Europe, said global expansion has made operational execution as critical as investment strategy. He said even a limited number of jurisdictions can create a web of compliance, reporting, and governance demands that strain internal resources and investor confidence.
General partners acknowledge the pressure. Beyond deal structuring, managers cited transparency, reporting expectations, anti-money laundering compliance, and multijurisdictional oversight as some of their most pressing challenges. For investors, the demand is shifting toward more granular insight into loan performance and borrower credit quality, rather than relying solely on high-level portfolio metrics.
To bridge the gap, fund managers are increasingly turning to specialist outsourcing. More than 80% of surveyed managers said they currently use third-party loan agents, and nearly 90% expect that reliance to increase. Limited partners overwhelmingly support the trend, with 92% saying outsourcing to specialist providers improves transparency and strengthens operational discipline in complex, cross-border portfolios.
David Kim, CSC’s managing director for North America, said private credit’s hands-on nature is driving higher expectations from investors. He said limited partners know the data exists and are now demanding consistent, detailed reporting across markets, putting pressure on managers to modernize systems and processes.
As private credit continues to expand beyond domestic borders, the report suggests that growth alone will not be enough. For fund managers, the ability to deliver clear data, regulatory alignment, and operational precision may increasingly determine which strategies attract capital — and which are left on the sidelines.
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