Private credit valuations held up in the second quarter of 2026, with 85% of loans valued above 97% of par, according to the Alternative Credit Council, but separate Houlihan Lokey data show stress building among the smallest borrowers, a split that matters for Asia-Pacific investors allocating through global funds.

TL;DR

  • The Alternative Credit Council (ACC) says 85% of loans were valued above 97% of par in Q2 2026, with median revenue growth of 6.5% and median interest coverage of 1.72x.
  • Houlihan Lokey reports that loans below 90% of par among borrowers with $10m to $20m of EBITDA rose from about 1% in 2023 to 12% in Q2 2026.
  • Neither dataset, as published, breaks out Asia-Pacific, so investors should ask managers for size-band and regional data.

What did the Alternative Credit Council report?

The Alternative Credit Council (ACC) is the private credit body within AIMA, the alternative investment management association. On 16 September 2026 it published a health check drawing on Houlihan Lokey's database of more than 80,000 loan valuations, its own Q2 2026 quarterly update and Cliffwater Direct Lending Index data. Houlihan Lokey is a global investment bank that values private loans for fund managers. The ACC reports that 85% of loans were valued above 97% of par, that 5% to 7% sat below 90% of par, that median revenue growth was 6.5% and median EBITDA growth 7.4%, and that median interest coverage was 1.72x. ACC global head Jiří Král said valuations were supported by borrower earnings growth and debt serviceability.

Where is the stress showing up?

The same health check shows 14.1% of borrowers with interest coverage below 1.00x, and payment-in-kind (PIK) interest at 1.6% of total interest dollars. In a separate 10 September analysis, Houlihan Lokey found that loans below 90% of par among its smallest borrowers, those with $10m to $20m of EBITDA, climbed from about 1% in 2023 to 12% in Q2 2026. Its stress rate for borrowers under $100m of EBITDA was 3.0% by size, against a full-market default rate of 0.8%. Houlihan Lokey's Timothy Kang cautioned that PIK is a structuring feature and not necessarily a distress signal.

What do returns and yields look like?

Houlihan Lokey's Private Performing Credit Index showed loans priced at 98.79% of par at 30 June 2026, with a yield of 9.97% and a spread of 5.76%. The ACC cites a Cliffwater Direct Lending Index return of 1.89% for Q2 and 12-month realised losses of 0.47%.

Why does this matter for Asia-Pacific investors?

Many Asian family offices, insurers and pension funds reach private credit through global funds, so these size-band splits can show up in their portfolios even when the headline looks healthy. Neither dataset, as we read it, names Asia-Pacific, and how much regional money sits in the smaller-borrower segment is not confirmed. Sensible questions for managers include exposure by EBITDA band, the share of PIK income, the spread of interest coverage and how loans are valued. Our recent reports on a Preqin survey showing infrastructure demand rising as private credit sentiment softens, IFM Investors opening a Singapore office with Asia targeted for half of a private credit fund, and Taiwan planning to ease offshore private fund investor caps show why regional demand for the asset class is worth tracking. This is market information, not investment advice.

Frequently Asked Questions

What share of private credit loans are valued above 97% of par?

The ACC reports 85% for Q2 2026, based on Houlihan Lokey's valuation database.

How much stress is there among small private credit borrowers?

Houlihan Lokey says loans below 90% of par among borrowers with $10m to $20m of EBITDA rose from about 1% in 2023 to 12% in Q2 2026.

Does the data cover Asia-Pacific?

Not as published. The ACC release and Houlihan Lokey analysis we reviewed do not break out the region.

Sources and Method

This is an original article based on the AIMA and ACC press release (aima.org, 16 September 2026), Finadium's coverage of it (16 September 2026, Fan Stanbrough), the Houlihan Lokey newsroom release on small-borrower stress (10 September 2026) and Houlihan Lokey's Private Performing Credit Index for Q2 2026. Figures are as published by those sources. We did not see the full underlying datasets. Opinions are attributed to the speakers named.