Who’s Winning the Financing Battle? It Depends Who You Ask

Private credit has been one of the most talked-about forces in dealmaking—but when it comes to actual competitiveness on financing, the picture is more nuanced.

Our latest PE150 microsurvey (N=93) reveals a market that’s far from one-sided:

• 40% of all respondents say banks and private credit are equally competitive

• 27% believe private credit funds are more competitive

• 33% still favor traditional banks

Translation: there’s no clear winner—yet.

But the real story emerges when you break it down by role:

Bankers are the most likely to call it a tie (45%), with only 27% conceding an edge to private credit—suggesting continued confidence in bank-led financing.

PE sponsors, on the other hand, are decisively leaning toward private credit:

• 41% say private credit is more competitive

• Just 27% favor banks

This aligns with what we’re seeing in-market: certainty, speed, and flexibility continue to tilt sponsor preference toward private lenders.

Meanwhile, consultants stand out for their strong bias toward traditional banks:

• 60% say banks are more competitive

• Only 7% favor private credit

Likely reflecting a more conservative lens—or exposure to larger, more structured deals where banks still dominate.

The Bottom Line

Despite the narrative of private credit’s rise, this is still a two-horse race.

• Private credit is winning on execution and flexibility

• Banks remain strong on pricing and scale

• And for many deals, the answer is increasingly: use both

As financing markets evolve, the firms that can arbitrage across both channels will have the edge.