Private Credit as a New Leverage in Financing Innovation: Opportunity and Risk Analysis Drawing on Case Evidence

Authors

DOI:

https://doi.org/10.63556/tisej.2026.1912

Keywords:

Private Credit Mechanism, Innovation Financing, Market Risk, Digital Asset Financing, Case Study

Abstract

The global financial system is undergoing a profound transformation due to capital constraints imposed by Basel III and IV regulations and the shrinking risk appetite of banks. Particularly in sectors with limited tangible assets but high growth potential, such as technology and artificial intelligence, traditional banking loans are being replaced by "private credit" markets. Utilizing an explanatory multiple-case study design across six cases ranging from meta data centers to cloud security, this study sheds light on the role of private credit within the technology ecosystem. At the core of the study lies the question of how these financial instruments digitalize the traditional concept of collateral to serve innovation. Furthermore, the study addresses current sectoral risks—such as debt costs driven by a high interest rate environment, the lack of transparency in private credit markets, and the shallowness of secondary markets—opening their potential adverse effects on financial markets to discussion.

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Published

22.09.2026

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Research Article

How to Cite

ARDOĞAN, A. R. (2026). Private Credit as a New Leverage in Financing Innovation: Opportunity and Risk Analysis Drawing on Case Evidence. Third Sector Social Economic Review, 61(3), 3211-3236. https://doi.org/10.63556/tisej.2026.1912