Private credit funds are nowadays key providers of credit to businesses and have taken over the role of traditional banks. This was particularly important during the financial crisis, when businesses required liquidity on flexible terms - the needs that banks were unable to satisfy. Another push came from the post-pandemic environment, where increasing interest rates rendered credit exposure appealing. As a result, nearly two decades of tailwind led to a boom. But as opportunities arise, so does competition. With different lenders entering the market, borrowers became more selective. Add the sliding interest rates and global instability, the private credit sector now faces some headwind.