Two-thirds of LPs are looking to invest in a smaller number of credit managers and back a limited number of credit strategies in the next two to three years
Private credit has been one of the most dynamic areas of the alternative assets market over the last decade. It is not only one of the fastest-growing segments of private markets, but it also continues to expand into an increasingly diverse array of assets.
Against this backdrop, around two-thirds of investors are expecting to focus their credit programmes and concentrate on a smaller number of credit managers in the next two to three years. At the same time, a similar proportion of respondents are also likely to back a more limited number of credit strategies.
Given the abundance of options and continued diversification, it is likely that many have gained ample experience across the strategy, identified their ideal niches, and are content to channel their investment capabilities within these specific areas.
North American LPs exhibited the strongest inclination towards achieving a concentration with a smaller number of credit managers, whilst investors from the RoW showed the greatest tilt towards backing a more limited range of credit strategies.
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Private credit continues to be one of the most dynamic areas of the alternatives markets. It’...
Investors are increasingly honing their GP relationships and focusing on deploying capital into a more selective number of credit strategies.
