Morningstar's Private Credit Assets Forecasted to Reach $4.9 Trillion

By Hao Liu • Monday, June 30 10:05 • Permanent Link

Morningstar, Inc. released its investor questions and answers, providing insights into the company's performance and future prospects. The document highlights key changes in various segments since the previous period.

Private Credit: Private debt assets under management totaled approximately $3.3 trillion in 2024, with a projected increase to $4.9 trillion by 2029. About a quarter of ratings-related revenue for Morningstar Credit was related to private transactions in 2024, marking an increase over 2023 and 2022. * Morningstar is focused on expanding private credit data, research, and capabilities to drive demand across multiple client segments.

Morningstar Direct Platform: Organic revenue growth decelerated from 8% in 2022 to 5.8% in 2024. The slowdown was attributed to flat-to-declining revenue trends for non-core products and slower growth in certain core products. * Morningstar Advisor Workstation growth slowed due to factors such as lower revenue associated with apphub and product delays affecting direct advisory suite.

Other Insights: Direct product licenses in the U.S. remained relatively flat between 2021 and 2024 due to factors such as a larger-than-typical price increase and mergers and acquisitions activity in the asset and wealth management customer segments. In 2024, the advisor and wealth manager customer segment accounted for over 40% of total Morningstar Direct Platform revenue, while asset managers accounted for more than 35%. * Morningstar aligns with industry practices by not publishing a specific total addressable market (TAM) figure for Morningstar Direct Platform.

Morningstar Credit: * A June 2024 NAIC report, which noted that smaller credit ratings agencies provided higher ratings compared to the NAIC's Securities Valuation Office, was retracted due to data quality issues in 2025.

The release underscores Morningstar's strategic focus on leveraging growth opportunities within its various segments while addressing challenges to drive sustainable performance. The market has reacted to these announcements by moving the company's shares 0.8% to a price of $313.01. For the full picture, make sure to review Morningstar's 8-K report.

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