Allocations challenged, but sentiment is positive

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Last year saw limited partners rein back on their private credit commitments, but there’s no lack of confidence in prospects for the asset class.

In 2023, limited partners were cautious about allocations to alternative assets in general – private credit may have suffered a little less than some other areas of investment, but it still suffered. Some of this was to do with concerns over the macroeconomic and geopolitical environment, some of it was a practical challenge created by the denominator effect.