Substantive Research has reported a sharp escalation in market data costs as private credit and leveraged finance markets continue to expand rapidly. The firm’s latest market data pricing study, which now benchmarks 41 vendors, a 95% increase from 2024, shows that private markets, particularly private credit with over $3 trillion in assets under management, are fueling a surge in demand for accurate and transparent data.
The company noted that vendors are becoming more aggressive, with renewal uplifts ranging between 10% and 40% and limited room for negotiation. This comes as active managers seek performance advantages in less liquid and less transparent markets, heightening the importance of reliable third-party data sources for valuation and investment decisions.
CFOs and financial executives will find these findings critical as rising data expenses directly affect operational budgets and long-term return on investment strategies. Substantive Research CEO Mike Carrodus cautioned that firms expanding into private markets must prepare for costs that increase well above inflation, while Head of Market Data and ESG Analytics Czarina Reinante warned of “aggressive year-on-year price hikes and a lack of viable alternatives.” The company plans to extend its coverage to over 60 vendors and 500 products by year-end, providing deeper visibility into pricing behaviors shaping financial data spending.
