Private Credit Faces a “Quality” Test

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Hedge Fund Private Equity

Private Credit Faces a “Quality” Test

hedgeco

4 months ago

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(HedgeCo.Net) After more than a decade of extraordinary growth, private credit is entering a decisive new phase. What was once viewed as one of the most resilient and attractive corners of the alternative investment universe is now facing its most serious test since the Global Financial Crisis.

Publicly listed Business Development Companies (BDCs)—widely considered a liquid proxy for private credit—have seen valuations decline sharply in recent months. The shift is subtle but meaningful: mark...

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