Private Credit Risk: What Investors May Be Missing
Private Credit Risk: What Investors May Be Overlooking
$3.5T
Global AUM — up
from $500B a decade ago
Private credit has grown sevenfold — and most investors are just now paying attention
85%
of 2024 defaults
were cov-lite loans
Fewer covenants mean fewer early warning signals for investors
33¢
Recovery per dollar
on direct loan defaults
When defaults hit, the loss severity is far higher than most models assume
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