Returns on Private Credit

Private Debt Benchmarks

Source: https://www.investmentcouncil.org/wp-content/uploads/2024/07/FINAL-1Q24-Private-Credit-Trends.pdf

Annualized Return Private Credit

Source: https://www.partnersgroup.com/~/media/Files/P/Partnersgroup/Universal/news-and-

The image shows that private credit investments have achieved an annualized return of 8.9%, substantially higher than the 1.3% return of traditional U.S. bonds. This highlights the attractiveness of private credit as an asset class, particularly for investors seeking higher returns than those typically available in public bond markets.

Risk vs Return in Private Credit

Source: https://www.investmentcouncil.org/wp-content/uploads/2024/07/FINAL-1Q24-Private-Credit-Trends.pdf

Private Debt Performance by Strategy

Source: https://www.mckinsey.com/industries/private-capital/our-insights/mckinseys-private-markets-annual-review#/

The chart highlights the impressive performance across various private debt strategies from 2011 to 2020. Mezzanine funds stand out with the highest top-quartile returns at 14.4%, followed by distressed strategies at 11.6%. These strategies offer excellent opportunities for investors seeking higher returns. Across all strategies, the median returns are strong, showcasing the resilience and consistent performance of private debt as an asset class.