Myth #9: “Without a public benchmark, private credit returns aren’t dependable”

Private credit assets are illiquid, and don’t trade. That distinguishes them positively from larger, liquid, public, yet more volatile, assets correlated with market moves. Middle market loan yields are therefore more stable through business cycles.

Also, being illiquid, private credit demands, and achieves, a premium to the broadly syndicated loan market. This differential is historically 100-200 basis points.

Similarly, private credit issuers are smaller, yet are leaders within their industry niches. That makes them unique investments, requiring experienced managers to source and underwrite.