Gatekeepers weigh the pros and cons of private credit

Published: June 17, 2024

Crescent Grove’s Andrew Krei, while still recommending private credit funds on his alts recommended list, sees better relative value in other vehicles now. …

Unlike in the pre-pandemic, low-interest rate environment, when credit yield was hard to come by, investors now have a bevy of options to generate fixed-income, making private credit stand out less, according to Krei.

‘Now, as you can fast forward in this environment where rates have come up pretty materially within traditional liquid fixed income markets, there’s maybe not as much advantage to be had in our view within private credit right now,’ Krei said. …

Krei is far from giving up on private credit. … ‘We won’t ignore it and will still pursue it. But that I would say is just kind of the general approach as we sit here today,’ he said.

Read the full article here.