The Bank of Japan (BOJ) released a research paper stating that the private credit fund market is expanding, especially in the United States, with a core strategy of providing direct loans to small and medium-sized companies with lower credit ratings. The report highlighted that continuous capital inflows have intensified competition, leading some funds to alter lending conditions and diversify across asset types and structures, with asset-backed financing (ABF) funds and semi-liquid funds targeting retail investors growing. This indicates a change in the risk profile of some private credit funds. Given the increasing interconnectedness between Japanese financial institutions and institutional investors and private credit funds, the BOJ believes it is necessary to pay attention to changes in risk profiles and closely monitor their investment practices and credit developments.