Private Credit: Spreading Fact From Fiction

This report examines the growth and health of the private credit market, arguing that systemic risks are low despite recent headline-grabbing defaults. It emphasizes that 86% of the market remains in traditional drawdown funds, and performance is driven largely by manager selection.

Key Takeaways

• 1.Private credit is functioning as intended with semi-liquid vehicles representing only 14% of assets under management.
• 2.Fundamentals in private credit remain generally healthy, but investor education regarding liquidity constraints is critical.
• 3.Manager selection is the primary driver of success in private credit due to the wide dispersion of returns across strategies.

Table of Contents

• Key takeaways
• What is actually going on in private credit?
• How big are private markets and has too much capital entered too fast?
• ABC's of Business Development Companies (BDCs)
• How are BDCs (and perpetual private credit funds) holding up?
• What is worrying investors? Tech exposure and credit quality
• Implementation and manager selection are key for private markets
• Not all private assets are created equal – manager selection is key
• The spectrum of private credit is vast and diversified
• Definitions
• Investment Risks and Important Information
• Disclosures

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial