AVOIDING losses is key when investing in private credit, but navigation can be tricky given a general lack of data as well as a lack of standardised metrics.
Initiatives are underway to address this, but the higher-for-longer interest-rate environment means investors should pay more attention to default risks and think about diversification.
“Transparency is key for private credit. Investors need to understand the underlying exposures within a private credit vehicle and the associated risks linked to those assets,” said Brett Craig, director of private credit at asset manager Aura Group.