The Golden Age of Private Credit? Opportunity in Uncertain Times

While surging inflation, fast rising interest rates, recessionary fears and geopolitical uncertainty are weighing on the performance of traditional assets, private debt “is uniquely positioned for both reliable income and risk-adjusted returns,” notes alternative research analyst Preqin’s most recent Global Private Debt Report.

Private debt (or private credit—the terms are used interchangeably) found a fertile environment following the Global Financial Crisis. For growing companies, it filled the lending gap left by retrenching banks. Investors in turn enjoyed attractive returns that far exceeded public debt yields. Key to private debt’s attraction is its ability to provide investors a higher-yield alternative to public debt markets, with relatively low volatility.

In this whitepaper, learn how in an era of rising public market volatility and pronounced downside risk, private credit is proving to be one of the more resilient sectors of the investment landscape. Fund managers that have the right operational underpinnings will be better positioned to take advantage of the unusual opportunities these uncertain times present.