A factual analysis of recent media coverage, the issues driving it, and why the concerns raised are largely specific to US markets.
There has been no shortage of headlines on private credit in recent months. As the asset class grows and begins to represent an increasingly meaningful share of broader debt markets, scrutiny is a natural and healthy part of the process. However, understanding where challenges genuinely exist, and where the market remains fundamentally and structurally sound, requires clear distinctions to be drawn between its different parts.
Much of the current media coverage fails to distinguish between several distinct issues including among other factors the rapid growth of non-traded Business Development Companies (BDCs) through retail capital inflows, concentrated BDC exposure to software companies and data centres and broader questions about underwriting standards and portfolio valuations and the health of private credit as an asset class.
This article seeks to unpick these topics and explain why European private credit is largely unaffected by these dynamics. Read the analysis below.
Download Pemberton Viewpoint: Private Credit in the News
