Private credit markets are heating up as a major growth driver heading into the year. Here's what's happening: capital-intensive industries—think infrastructure, energy, real estate—need serious funding. But traditional banking is hitting its limits. These institutions just don't have the appetite or risk tolerance to deploy capital at scale anymore. That's where asset-backed finance steps in. By securitizing real-world assets and creating new funding structures, lenders can meet demand that banks won't touch. Credit rating agencies are tracking this shift closely, and the consensus is clear—this segment will be a major engine for private credit expansion. It's a structural shift reshaping how capital flows to where it's needed most.