The majority of institutional investors, 88 percent, and 81 percent of Registered Investment Advisers (RIAs) say private credit is an important source of income and diversification within portfolios, according to a recent American Investment Council (AIC) commissioned survey.
“The message from investors and RIAs is clear: private credit has earned its place as a trusted source of returns and diversification,” AIC President and CEO Will Dunham said. “This survey confirms what we’ve been hearing from investors and advisers across the country. Their confidence in the asset class remains strong. With the overwhelming majority of respondents planning to maintain or increase their exposure over the next three to five years, private credit’s role in strengthening portfolios, creating jobs, and powering economic growth will only continue to grow.”
When asked whether private credit offers attractive risk-adjusted returns compared to other asset classes, 80 percent of RIAs agreed.
Nearly three in four investors said the asset class is either fairly or undervalued, and 74 percent of institutional investors viewed private credit as a core component of a resilient portfolio.
Looking to the future, 85 percent of respondents expect to maintain or increase their exposure to private credit over the next three to five years with 84 percent of institutional investors and 88 percent of RIAs expressing confidence the asset class will deliver value.