Big investors are trading private credit gains for infrastructure bets. Here's where else they're putting money.

"Private credit accounted for 6.8% of institutional investors' alternative-asset holdings in the fourth quarter of 2025, down from 9.7% December 2024. However, the asset class's net asset value increased roughly 20% from June 2024, according to Canoe. The decline reflects a shift in portfolio composition as other assets grew faster, rather than a contraction in private credit assets."

"Private credit's share of institutional portfolios has shrunk in part because investors have been receiving repayments and distributions from loans, "the asset class doing exactly what it is supposed to do," said Mike Muniz, chief strategy officer at Canoe Intelligence. What happens next is "the more consequential question," he said, as new checks to private credit are not keeping pace with distributions, a sign that "LPs are not in a rush to redeploy at the same rate.""

"Canoe Intelligence found that only infrastructure had net inflows from institutions in Q4 2025. Hedge funds and venture capital also gained a share of institutional investors' portfolios. The report, sourced from primary documents across 44,000 funds that provide visibility into $11 trillion in AUM, tracks institutions giving money to and receiving money back from all sorts of alternative investors, from venture capital to hedge funds."

Private credit accounted for 6.8% of institutional investors’ alternative-asset holdings in the fourth quarter of 2025, down from 9.7% in December 2024. Infrastructure was the only alternative category with net inflows from institutions in Q4 2025, while hedge funds and venture capital gained share. Private credit’s net asset value rose about 20% from June 2024, indicating the decline in share reflected portfolio composition changes rather than a contraction in private credit assets. The shift was driven partly by loan repayments and distributions, which matched private credit’s expected role. New investment checks into private credit did not keep pace with distributions, suggesting limited redeployment by limited partners.

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