Both fund managers and investors show strong interest in the private credit market, now valued at approximately $1.5 trillion, as reported by InvestmentNews.
A new report from the Alternative Credit Council and global law firm Dechert has identified key trends in this market. Private credit fund managers are increasingly offering customized exposure to investors, reflecting a growing demand for tailored solutions and flexibility in capital raising. The report highlights three main trends:
- There is a greater demand among investors for structures that provide customized exposure to private credit strategies.
- The appetite for hybrid and evergreen funds is on the rise.
- Private credit fund managers are increasingly seeking capital from retail clients.
According to the survey, eight out of ten private credit fund managers utilize commingled funds and other vehicles, while 95% offer managed accounts for individual investors. Gus Black, a partner at Dechert, emphasized the significance of private credit as a global asset class, citing its ability to offer predictable returns, flexibility, and resilience in volatile markets.
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