Can Private Credit Keep Outpacing Private Equity in 2024?

Last year State Street reported private credit funds averaged a 1.88 percent
return compared to to a paltry 0.41 percent return by buyout funds. But some of
the factors driving these results are expected to reverse in 2024.

Private credit has been “outpacing private equity returns as their lending rates have increased with the federal funds lending rate,” says Brad Haller, senior partner for West Monroe’s M&A Practice. “Additionally, private equity valuations have been compressed in some sectors, so realization values are down.” READ MORE