By Deepak Sheoran, Co-Founder and CTO
In the last quarter alone, private credit deal volume surged past $80B, with 2025 on track to break records. At the same time, global private market AUM is expected to hit $24 trillion by 2028. Behind the scenes, something else is happening: operations teams are struggling to keep up.
I've witnessed firsthand how operational inefficiencies can either accelerate or derail exponential growth. Today, I'm seeing a perfect storm brewing in private markets that demands immediate attention.
The landscape is shifting faster than we can adapt
The numbers tell a compelling story. Private credit isn't just growing, it's fundamentally reshaping how capital flows through the economy. But beneath these headline figures lies a more nuanced reality that most industry observers are missing.
- Private credit is becoming the default funding mechanism. As rates stay high and banks pull back from traditional lending, private credit is stepping in but not just for traditional deals, also to finance everything from AI infrastructure to corporate growth. It's fast, bespoke, & complex and it needs operational scale to match.
- This shift represents more than a market cycle; it's a structural transformation. The flexibility and speed that private credit offers comes at a cost: dramatically increased operational complexity. Each deal is unique, requiring custom terms, specialized reporting, and individualized investor communications. The days of standardized processes are over.
- AI infrastructure is being funded off balance sheet. Data centers, compute clusters, and model training pipelines are being financed via private vehicles often with multi-billion-dollar private credit structures. These deals come with complex reporting requirements, conversion mechanisms, and custom LP terms; all of which need structured, repeatable workflows.
- The capital intensity of these infrastructure plays is fascinating, especially how the financing structures are evolving to match the technology's complexity. We're seeing deals with performance-based conversions, compute-time revenue sharing, and dynamic LP allocations tied to model performance metrics. Each structure requires its own operational framework.
- Funds are scaling aggressively but ops are still manual. Whether it's secondaries platforms, credit roll-ups, or VC consolidations, firms are doubling down on growth. But most still manage capital calls, reconciliations, and investor reporting in spreadsheets and shared drives. That's no longer sustainable.
The operations crisis no one's talking about
Through my experience scaling companies and now working with private market operators at DwellFi, I've identified a critical disconnect: the operational burden in private markets is growing faster than headcount. Teams are being asked to move faster, close more capital, and deliver cleaner reporting without new resources.
This isn't just about efficiency; it's about survival. Operational bottlenecks can kill even the most promising growth trajectories. I'm seeing this play out in real-time across the private markets ecosystem.
The typical fund operations team today is managing:
- 3x more complex deal structures than five years ago
- 2x more investor reporting requirements
- 50% faster close timelines
- Increased regulatory scrutiny and compliance demands
Yet most are still using the same tools and processes they had in 2015. The math simply doesn't work.
The AI-native solution
At DwellFi, we've built an AI-native platform that automates the hardest parts of fund operations. Capital workflows, reconciliations, investor statements, fund conversions; all streamlined with vertical AI, built specifically for private capital teams.
The key insight is that generic automation tools don't work for private markets. The domain knowledge required is too specific, the edge cases too numerous, and the stakes too high. You need AI that understands the nuances of private market operations from waterfall calculations to LP-specific reporting requirements.
We're not just digitizing existing processes; we're reimagining them from the ground up. When you combine deep domain expertise with AI-native architecture, you can eliminate entire categories of operational friction.
Looking forward: The competitive advantage of operational excellence
The firms that will dominate the next decade of private markets aren't necessarily those with the best deal sourcing or the deepest pockets. They're the ones that can operate at scale without operational debt.
Operational excellence translates directly to competitive advantage. Faster fund closes, cleaner reporting, and better investor experience all compound into stronger fundraising, better deal flow, and higher returns.
The time to act is NOW!
If your team is scaling but your ops feel stuck in 2015, you're not alone. But you also can't afford to wait. The firms that solve this operational challenge now will be the ones that capture the outsized returns available in this massive market expansion.
The convergence of private credit growth, AI infrastructure financing, and operational complexity creates a unique moment. Those who recognize it and act decisively will define the next era of private markets.
At DwellFi, we're helping firms stay ahead, not catch up. Because in a market moving this fast, catching up isn't an option.