Attractions of the Private Credit Secondary Market

The private credit secondary market presents several attractive factors for investors. Firstly, the private credit market itself is experiencing significant growth, with assets under management growing from $300 billion to $1.5 trillion and expected to further expand by 15-20% over the next five years. There has also been a substantial increase in the number of credit managers operating in the market. Additionally, private credit has diversified beyond institutional pension plans to include insurance companies and high net worth retail investors, creating more opportunities for secondary solutions. Pantheon, in particular, views the primary market as providing a fertile backdrop for investment with a substantial increase in deal flow. The need for unique skills in evaluating managers and liquidity options further adds to the appeal of the private credit secondary market.