Family offices plan to boost private credit exposure: survey

FIRMS that cater to the world’s ultra-wealthy are planning to boost their allocations to private credit, according to a survey of 250 institutional investors in the UK, Europe and the Middle East. 

The once niche market has become a sought-after option for investors. Family offices, private banks, foundations and endowments are likely to boost allocations to the US$1.7 trillion asset-class over the next two years, the study from asset manager PGIM showed. 

A majority of respondents at insurers and pension funds expected to keep their allocations to private credit, reflecting investment limits. Alternatives made up about 25 per cent of the surveyed firms’ portfolios, with private credit accounting for 11 per cent of that allocation. 

Overall, 44 per cent of respondents said they’re likely to increase holdings of private credit, followed by private real estate debt at 42 per cent and sustainable equity at 40 per cent.