Private Credit Risk: What Investors May Be Missing

InvestingResearch

Jun 12

Private Credit Risk

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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Eagle Talon Partners · 6 Min Read · Portfolio Strategy

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Karim Mawji

The question no financial model can answer

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Private Credit Risk: What Investors May Be Missing

Private Credit Risk: What Investors May Be Overlooking

The question no financial model can answer

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