Download PitchBook’s Report here.
The Private Debt Barometer remains stable and near neutral with a score of 54, producing a nowcast of 2.8% and a desmoothed nowcast of 2.9% for Q3 2025. The score reflects solid performance across public equity and credit markets and easing market volatility, partially offset by tightening lending standards and a modest increase in the Financial Stress Index. Barometer-implied returns indicate that relatively strong performance may persist through Q2 and Q3 2025 as finalized results are reported. However, as of the end of Q3, the environment for floating-rate instruments has potentially become less favorable. Expectations for declining base rates, coupled with tight credit spreads, suggest limited upside, both from falling income on the floating-rate component and minimal potential for price appreciation.
(Past performance is no guarantee of future results.)
Private Credit Defaults 101: Back to School
As Labor Day approaches, the unofficial end of summer is upon us. But, before we get too sad, there is also the familiar back-to-school energy.