Five considerations for allocating to private credit

Private credit has seen significant inflows for much of the past decade, and recent events have only added to the asset class’s attractiveness. But as the name suggests, private credit can only be accessed through deeply established relationships, requiring clients to partner with experienced asset managers that can navigate this market effectively. Five important factors may help investors evaluate the benefits of private credit in a portfolio.

Highlights

• Creating multi-asset portfolios that effectively blend private and public credit has become a top priority for investors seeking to enhance yield and risk-adjusted return.
• Investors’ growing interest in private credit has been fueled by rising interest rates and volatility in the public markets.
• Experienced asset managers can better assess the complexity of deal structures and the wide variety of idiosyncratic factors.