The word “private” in private credit signifies not just “non-public,” but “non-traded.” This is important from an investor perspective because it means you cannot readily buy or sell private assets the way you can stocks and bonds. These assets are called alternatives because they — like real estate and infrastructure — complement liquid assets. It is the foundational characteristic of the asset class.

Do homeowners expect daily valuations on their properties? No, because they know real estate value is proven over time.

Yet as larger managers focused on the wealth segment, they suggested the line between liquidity for public and private assets was “blurring.” This accompanied offering investors the ability to redeem their interests beyond the typical 5% per quarter — implying a degree of flexibility the underlying assets cannot support.