Access differentiated opportunities in private credit
the private credit divide
While recent headlines have put private credit under the spotlight, we believe the market's underlying fundamentals remain sound. In our view, private credit risk is increasingly concentrated in specific pockets of the market, leaving attractive opportunities in areas beyond those segments.
Watch as CIO Mike Kelly unpacks how risk and return potential differ across market segments and why being selective matters more than ever.
DESPITE CONCERNS, THE MARKET REMAINS HEALTHY
Tell tale signs from past bubbles and financial crises remain absent from today's market. Economic growth is strong and corporate earnings remain resilient, supporting borrower health and broad credit market performance.
There are no signs of excess systemic leverage. Corporate debt growth is in line with household debt and remains well below GDP growth. In fact, private sector debt—the combination of corporate debt and household debt—as a share of GDP is declining, not rising as it typically does ahead of market bubbles.
Source: Macrobond, Future Standard as of September 30, 2025, latest data available.
crowding, not crisis
Many of the concerns currently surrounding private credit can be addressed not by avoiding the asset class, but by being selective within it.
Capital crowding reshaped risk‑reward dynamics across the market, creating a growing divide between crowded large‑cap strategies. Less competitive segments such as core and lower U.S. middle market where underwriting discipline and pricing power earn an income premium.
THE FIVE PRESSURE POINTS SHAPING PRIVATE CREDIT
IMPLEMENTING A SPECIALIZED APPROACH
Head of Global Credit, Andrew Beckman, and his team bring decades of experience across multiple credit cycles, with backgrounds in distressed and special situations investing that shape their approach today. The team built their careers in segments where competition is lower, deal structures provide stronger protections, and underwriting discipline matters most.
Watch the webinar for a closer look at the Global Credit team’s specialized approach.
EXPLORE MORE PRIVATE CREDIT INSIGHTS AND RESEARCH
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