How should investors be evaluating private credit? Recent research is casting doubt on the touted benefits. A new study by the National Bureau of Economic Research is suggesting that, when considering the additional risks and fees, private credit investments may not offer the alpha. In other words, excess returns that many investors anticipate have not materialized. This finding prompts...
Investing in Private credit provides a tantalizing opportunity for wealthy investors. Drawn by the allure of potentially higher returns with less risk compared to traditional public market bonds. However, beneath the surface of these enticing prospects lie significant private credit risks that warrant a closer examination. This blog post aims to shed light on the realities of private credit...
The global economic landscape is filled with idiosyncrasies. One of these is that low interest rates can lead investors to take higher risks. A popular misconception, largely influenced by such an environment, is the role of private equity (PE) in portfolio diversification. Let's delve into the nuances of this, especially for keen investors in private equity navigating today's trends. Before...
Private credit is one of the hottest asset classes today. Recently, a colossal $4.25 billion acquisition of a Baxter International Inc. division was financed not through conventional channels like banks, but through private credit supplied by entities like Ares Management, Blackstone, Blue Owl Capital, and HPS Investment Partners. Investors piling into private credit are being seduced by higher returns...
