Churchill Asset Management CEO Ken Kencel announced the firm has raised $16 billion for its senior lending program. Speaking on Bloomberg, Kencel noted institutions are steadily increasing their commitments to private credit. This capital raise reflects the growing appetite for direct lending among large investors seeking yield in a shifting rate environment.

The fundraising milestone underscores the expanding role of private credit in corporate financing. As traditional banks pull back, non-bank lenders like Churchill are filling the gap for middle-market companies. This shift has accelerated since the 2008 financial crisis, with private credit assets under management swelling to over $1.5 trillion globally.

Kencel expects a very active year for M&A in 2026. He believes the pipeline for deals is building, fueled by private equity firms needing financing to execute transactions. Investors will watch how this new capital is deployed and whether it spurs a wave of leveraged buyouts and corporate mergers next year.