High interest rates, volatile stock markets could prime private credit to outshine private equity again

Private credit’s mass appeal creates new risks

Blackstone, Apollo and others have raised nearly $300 bln from individuals for direct loans, thanks to evergreen funds which allow withdrawals. It dilutes private credit’s advantage over banks, locked-up cash, and puts the onus on managers to stay disciplined amid a nascent boom.

High interest rates, volatile stock markets could prime private credit to outshine private equity again

Funds that invest in private credit globally may be poised to beat those for private equity (PE) again this year. That is especially if interest rates remain high while exit opportunities in stock markets are stymied by volatility.

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Private credit investors to rejig portfolios amid tariff fears From Bloomberg: Private credit investors are seeking to reshuffle their portfolios as the escalating global tariff war prompts mounting fears over allocations into the US. A growing number of portfolio managers are looking to geographi... Article link