Cross-Border Private Credit Set to Surge, But Operational Complexity Threatens Momentum, CSC Finds

(BUSINESS WIRE) -- Cross-border private credit transactions are poised for strong growth, yet operational complexity is emerging as a critical hurdle. According to CSC, the leading provider of business administration and compliance solutions, an overwhelming 92% of limited partners (LPs) express concern over the complexity of these deals.

Published in CSC’s latest report, Private Credit 2025: Global Strategies for a $1.5 Trillion Market, the findings highlight a growing disconnect between investors and fund managers as private credit continues its rapid international expansion. ¹

While both LPs and general partners (GPs) remain optimistic about the growth of cross-border private credit, they diverge sharply when it comes to operational readiness. Nearly eight in 10 GPs (79%) anticipate growth in the sector over the next three years, with more than half (51%) expecting a significant acceleration. LPs, however, are increasingly cautious—40% reported turning down multiple fund or investment opportunities last year due to operational concerns such as inconsistent reporting standards and unclear risk frameworks.

“The global expansion of private credit is undeniable, but the operational complexity it brings must not be underestimated,” said Bas Coenen, CSC’s head of Fund Solutions, Europe. “Operating across multiple jurisdictions introduces a maze of reporting requirements, investor expectations, and compliance standards. Even managing a handful of markets can prove challenging. The message from investors is clear: confidence in cross-border strategies hinges on transparency, regulatory alignment, and flawless execution.”

GPs recognize the operational challenges that come with cross-border expansion—particularly around anti-money laundering (AML) regulations, multijurisdictional reporting, and enforcing covenants across diverse legal systems. Transparency and reporting demands from LPs now rank among managers’ top concerns, second only to the complexity of deal structuring.

At the same time, LPs are shifting their priorities toward more granular and consistent data on loan performance and borrower credit quality. These metrics now rank just behind loan-level returns and borrower payment trends, while broader measures such as liquidity and portfolio risk visibility are being assessed through this more granular data.

To meet rising expectations and scale effectively, many GPs are investing in technology upgrades and partnering with specialist service providers. Currently, 82% rely on third-party loan agents, with 66% doing so regularly over the past year, and 88% expect usage to increase. LPs strongly endorse this shift: 92% believe GPs who outsource to trusted specialists are better equipped to deliver enhanced reporting and risk transparency, especially in complex cross-border environments.

“Private credit is inherently a hands-on asset class - far more operationally intensive than equity investing,” said CSC’s David Kim, managing director, North America. “LPs know the data is available, and they’re demanding more of it—greater transparency, consistency, and detail. That’s putting real pressure on managers to elevate their reporting capabilities and strengthen operational frameworks.”

He added: “Many are now seeking partners who can support them across the full investment life cycle, from loan agency and fund administration to SPV management. CSC is among the few with the scale, expertise, and infrastructure to deliver truly end-to-end solutions.”

To receive a copy of CSC’s Private Credit 2025: Global Strategies for a $1.5 Trillion Market, please download it at cscglobal.com/service/campaigns/private-credit-2025.

¹CSC, in partnership with PureProfile, surveyed 500 private capital professionals globally, comprising 300 GPs and 200 LPs across North America, Europe (including the U.K.), and Asia-Pacific. Respondents held senior positions within fund management, investment, and risk functions across asset management, pension funds, insurance, and wealth management sectors.

About CSC

CSC is the leading provider of business administration and compliance solutions, offering industry-leading expertise and unmatched global reach to alternative fund managers and capital markets participants. Leveraging deep institutional experience and a tailored approach, CSC delivers a comprehensive suite of fund administration, trust, agency, and compliance services to support a wide range of private and public market transactions, complex fund strategies, and scalable operations.

As the trusted partner of choice for more than 70% of the PEI 300 and 90% of the Fortune 500^®, CSC helps clients navigate operational and transactional complexities across more than 140 jurisdictions and various asset classes. With extensive worldwide capabilities, our expert teams provide solutions tailored to each client’s needs. Privately held and professionally managed since 1899, we combine global reach, local expertise, and innovative solutions to help our clients succeed.

We are the business behind business^®. Learn more at cscglobal.com.

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