Rapid growth in private credit has brought a new generation of managers, but few have been tested through a full credit cycle. We believe experience matters now more than ever.

As conditions evolve, with tighter spreads, more aggressive underwriting and emerging risks in areas such as software lending, private credit is entering a period of greater uncertainty and dispersion. At the same time, increased redemption activity in non-traded business development companies (BDCs) and a shifting macro backdrop are adding to market complexity.

We believe this environment will increasingly reward managers with disciplined underwriting, risk control and the ability to navigate periods of dislocation.