Investors in private credit are currently getting better returns than they would from private equity, new data shows, piling even more pressure on a buyout industry that’s reeling from the evaporation of M&A this year.
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Investing in private debt | Connection CapitalAdvantages vs. Disadvantages of Equity FinancingThe Pros and Cons of Debt and Equity FinancingHow Much Debt Is Right for Your Company?The State Street Private Equity Index, which collects data from about 3,900 funds with $4.8 trillion in capital commitments, calculated that private debt funds returned 2.61% to their investors in the second quarter of 2023, the latest data available, while buyout funds returned 2.29%. Since the start of 2022, private credit has been ahead in all but one quarter, according to State Street’s numbers.
