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Updated · Pensions & Investments · Jun 23Institutional Investors Stick With Private Credit as BDC Redemptions Push Sharper Manager Selection
3 articles · Updated · Pensions & Investments · Jun 23Summary
- A new survey found most institutional investors are remaining in private credit even as redemptions rise in business development companies.
- Manager selection has become the key differentiator, with LPs turning more selective rather than pulling capital from the asset class altogether.
- Elevated BDC withdrawals are sharpening scrutiny of performance and strategy across private credit managers.
- The shift comes amid a small-cap resurgence, adding pressure on active managers as investors reassess where private credit exposure is best placed.
Insights
With small-cap stocks soaring and private funds locking up cash, where is the smart money heading now? As AI disrupts a key sector, is the $2 trillion private credit market facing its first real stress test?