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Key findings
Allocations to maintain or increase
Almost all of investors polled (96%) expect to increase or maintain their private credit allocation in the next twelve months.
Fewer managers, more of the action
60% of LPs surveyed expect to allocate to 10 or fewer fund managers.
Direct lending has its day
Investors’ most favored strategy remains senior, corporate direct lending, which has now become a “core” component of most private credit portfolios.
Investing in secondaries yet to take off
66% of respondents are yet to venture into this space, with no exposure to the private credit secondaries market.
GPs AUM growth a concern
82% of respondents agreed that AUM growth may lead to a deterioration in credit standards.
Traditional drawdown structures still the clear favored structure
53% of respondents prefer closed-ended, commingled draw-down funds with Private BDCs the least preferred.
Source: CL Research
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