Alternative Credit: What It Is, Why It Matters and Why Communications Are Vital to Its Continued Growth and Success

In the wake of the 2008 financial crisis, traditional banks pulled back from many forms of lending due to tighter regulations and increased risk aversion. At the same time, record-low interest rates pushed investors to seek out new sources of yield—ideally ones with low correlation to public markets.

Enter alternative credit, a term that covers private as well as structured credit. What began as a niche corner of finance—focused on direct lending to PE-backed small and mid-sized businesses—has since grown into a $2–3 trillion global industry. Estimates indicate it will grow to trillions more in the coming years (how many trillion depends on who you ask), spanning direct lending, asset-based finance, and a host of adjacent strategies.

Structured credit includes vehicles like CLOs, CDOs, MBS, and ABS—acronyms that evoke mixed memories for many. But while some structures faltered during the financial crisis, others, like CLOs (which bundle corporate loans into bonds of varying levels of risk and potential return), proved resilient. Many credit structures have since been re-engineered and are now regaining acceptance with an ever widening group of investors, as demonstrated by 2024 setting record levels for issuance across the space.

Together, these strategies represent some of the most dynamic and fastest-growing sectors in capital markets. They’re also some of the most complex—making them a uniquely compelling challenge for communications professionals.

Why Communications Matters More Than Ever

As alternative credit grows, so too does the opportunity, and I would posit necessity, for communications professionals to shape how the market understands the space. Nearly every leading asset manager is adding more of these strategies to their offerings, and expanding the scope of investors they target with them.

For firms competing in a space often viewed as opaque, and which is admittedly more homogenous than various flavors of equity investing, communications are key to earning your market position. So, a manager’s narrative, value proposition and investment thesis must be thoughtfully developed and clearly and impactfully articulated. A manager’s areas of advantage can span sourcing, specialized focus, track record strength, or—importantly—sheer size, which in credit can lead to meaningfully increased deal access.

This environment creates real storytelling challenges—and opportunities—for communicators who love going deep on complex topics and translating them into something investors (and reporters) can act on.

A Rapidly Evolving Audience

The investor base for alternative credit is also changing fast. What was once the exclusive domain of pensions and endowments is now attracting RIAs, private banks, family offices, and even retail investors through BDCs and interval funds. That evolution raises the stakes—and the complexity—for communicators.

Institutional allocators want to dig into stress scenarios and historical performance.

Advisors need clarity on structure, liquidity, and tax considerations.

High-net-worth investors ask: How does this hold up in a downturn?

These aren’t one-size-fits-all audiences. Reaching them requires precision, creativity, and a deep understanding of both the product and the people evaluating it. For communicators who thrive on variety, complexity, and cross-disciplinary collaboration, there’s no better space to build a career.

What We Do—and Why It Matters

At Prosek, we help many of the world’s most prominent credit managers tell their story—effectively, strategically, and with credibility. Our work spans:

• Media relations: As the asset class has grown, so have the number of well-sourced, technically adept journalists focused on it. While at the same time, reporters with broader financial beats are increasingly covering the space as well. Prosek has deep relationships across the media landscape, and on any given day dozens of our teams are engaging with these reporters and editors on matters ranging from record setting fund closes, to the largest M&A deals in asset management, to complex restructurings and crises. Additionally, given the breadth of our work in the space, and the depth of our knowledge, we regularly act as advocates for the sector to rebut some of the skepticism and criticism any fast-growing asset class is likely to attract from market participants and the media.
• Investor Relations: For publicly traded alternative asset managers—as well as managers with public vehicles like BDCs, mortgage REITs, and closed-end funds—investor relations is essential. Our IR teams deeply understand the business and financial models of our clients and work closely with CEOs, CFOs, and senior leadership to shape compelling investment theses, target the right analysts and investors, and ensure that both qualitative and quantitative attributes are clearly communicated to the Street. From quarterly earnings and investor days, to transactions and capital raises, we’re embedded partners in making sure the message resonates in the public markets.
• Content Development: Our PR and content teams collaborate to develop tailored messaging across investor types—whitepapers for institutions, explainer videos for financial advisors, and simplified materials for high-net-worth investors. It’s a mix of finance, storytelling, and design thinking that makes every day different.
• Organic and Paid Digital: While TikTok may not be the battleground for private credit, a platform like LinkedIn absolutely is. Our team has long led in helping financial services leaders craft engaging, organic online profiles, and in the past several years have increasingly worked with clients on paid advertising. Given the specific target demographics for these products and regulatory requirements, developing and executing successful paid campaigns requires a deep level of sector expertise, in which our digital and paid teams are unmatched.

The Bottom Line

Alternative credit is one of the most exciting and consequential areas of modern finance—and also one of the most misunderstood. That’s where communications comes in. It’s not just about media coverage or messaging. It’s about shaping market perception, building trust, and driving investment decisions.

If that sounds like your kind of challenge, we’d love to hear from you. This is a space where people who are smart, curious, and collaborative can thrive—and help define how a multi trillion-dollar market tells its story.

We’re proud to support some of the world’s savviest investors in doing exactly that—and are always looking for curious, talented and creative folks to join the team and help us do it!

This piece is part of a new series on public relations and the credit landscape, authored by Prosek’s Josh Clarkson and Remy Marin.