The global trend toward deglobalization, accelerated by former U.S. President Donald Trump’s tariff policies, is creating strong tailwinds for private credit markets, according to Marc Pinto, Global Head of Private Credit at Moody’s Ratings.
Speaking in an interview with Bloomberg Television on Friday, Pinto highlighted how shifting supply chains and government constraints are opening the door for private capital to play a more significant role in global financing.
“Governments are pressured and they have capacity constraints,” said Pinto. “That’s where private credit markets can step in.”
Pinto explained that as companies look to relocate manufacturing and logistics closer to home — partly in response to U.S. trade policy — demand for private financing is growing, especially in capital-intensive sectors like infrastructure.
$2.5 Trillion Data Center Boom Expected
One key area of activity is infrastructure, where Pinto has observed an increase in deal flow. Notably, he projected that $2.5 trillion will be spent on data centers over the next five years, with private credit providing a significant portion of that financing.
However, Pinto cautioned that the complexity of these deals presents challenges for investors.
“Direct-lending transactions tend to be complex,” he said, adding that banks and insurance companies — major buyers of private credit — are demanding greater deal transparency and granularity. This complexity can introduce credit risk, he noted.
Private Credit Broadens Beyond High-Yield
Pinto also addressed a common misconception about the private credit market — namely, that it only serves high-yield or riskier borrowers.
“One of the myths is that private credit is mostly for high-yield companies,” he said. “But insurance companies primarily want investment-grade risk, so private credit is pivoting.”
This shift reflects a maturing market, where direct lenders are increasingly working with higher-quality borrowers, including those with investment-grade credit profiles. The trend is reshaping how institutional investors view private credit as an asset class — not just for opportunistic returns, but also as a stable, long-term allocation.
A Resilient Market in Transition
The comments from Moody’s come at a time when private credit continues to expand globally, with firms stepping into spaces once dominated by traditional banks. As economic realignment and geopolitical tensions reshape global trade and capital flows, private credit is emerging as a flexible and essential financing tool for companies navigating uncertainty.
Pinto’s remarks align with a broader narrative that policy-driven deglobalization, infrastructure buildouts, and institutional appetite for tailored credit exposure are converging to make private credit a pillar of post-pandemic capital markets.
