NEW YORK, April 16, 2025 – Proskauer, a leading international law firm, today released its latest Private Credit Default Index (the "Index"), which tracks senior-secured and unitranche loans in the United States. The Index revealed a default rate of 2.42% for the period of January 1, 2025 – March 31, 2025. The rate is slightly lower than that of Q4 2024 (2.67%) and is consistent with the stabilizing trend seen in the broadly syndicated market. This quarter's Index encompasses 786 loans representing $148.6 billion in original principal amount.
"The latest default rate continues to reflect a stable and resilient private credit market. Despite a complex macroeconomic environment, credit fundamentals remain strong and lenders continue to show discipline in underwriting and portfolio management," said Stephen A. Boyko, partner and co-founder of Proskauer's Private Credit Group.
Across all three EBITA bands that the Index tracks, the default rate was less than or equal to the previous quarter. In companies with EBITDA of less than $25 million, defaults decreased from 1.8% in Q4 2024 to 1.4% in Q1 2025. For those with EBITDA of $25 million to $49.9 million, the default rate fell from 4.7% in Q4 2024 to 4.3% in Q1 2025. Companies with EBITDA equal to or greater than $50 million experienced no change, with the default rate staying consistent from last quarter.
The Proskauer Index contains a comparison to default rates published by the rating agencies, historical trends by industry and EBITDA bands, defaults by type, defaults in cov-lite loans and defaults by year of origination. The full report is available only to the Firm's direct lending clients.
Proskauer's Private Credit Default Index Reveals Rate Of 2.42% For Q1 2025
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