Why pension funds are doubling down on private credit despite deepening cracks

Pension funds are sticking with private credit, and in some cases doubling down even as concerns mount over underwriting standards, valuation opacity and sector concentration. 

Institutional investors, including pension funds, “generally remain committed to the asset class,” stated Mercer. This also touches on aspects of dividends.

So far this year, private credit has seen net inflows from large investors, the consulting firm noted.

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