Deutsche Bank has disclosed a €26bn private credit exposure, equivalent to about $30bn, as scrutiny around the asset class intensifies.

The German lender revealed the figure in its latest annual report. The disclosure comes as the roughly $1.8trn private credit market faces increased investor caution.

Recent corporate failures and concerns around underwriting standards have heightened attention on the sector. In addition, rapid advances in artificial intelligence have raised questions about the resilience of some borrowers, particularly software companies.

Despite these developments, Deutsche Bank said it is not exposed to “significant risks” linked to non-bank financial institutions. However, the bank noted that indirect credit risks could emerge through interconnected portfolios and counterparties.

The report also highlighted growing attention on risks within private credit markets. It stated that “failures of a select number of sub-prime lenders in the U.S. increased investor focus on risks associated with private credit and raised wider concerns around underwriting standards and fraud risk.”

Deutsche Bank’s exposure to the asset class has increased steadily. Its private credit loan portfolio rose to €25.9bn at amortised cost, up from €24.5bn in 2024.

The lender has particularly strong exposure to technology borrowers. Loans to the technology sector, including software companies, reached €15.8bn, compared with €11.7bn previously.

Even as risks draw greater scrutiny, Deutsche Bank signalled ambitions to strengthen its position in the market. The bank said it plans to expand its private credit offering through selective regional growth. It also aims to develop innovative products and digital investment solutions in collaboration with its private banking business.

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