LPs are benefiting from higher asset level returns. This is a function of market dislocation over the last 24 months, a more pronounced absence of banks from the market and the rate hike cycle implemented by the European Central Bank, the Bank of England and the US Federal Reserve. This is benefiting our current fund vintages, with the average expected gross returns for the assets in our current mid-market fund roughly 12 percent.
That includes assets we put in during recent periods of dislocation and commitments made more recently, with the environment now feeling a little more normalised. Those returns are 200 to 300 basis points above our historical targets, which makes this our highest return vintage to date. It is important to note that we have not changed our investment philosophy to generate those returns. Our credit process has remained disciplined and consistent.
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