The performance of various credit strategies reveals significant discrepancies, with direct lending and mezzanine strategies yielding over 10% and nearly 12% returns respectively in 2023, while credit hedge funds lagged behind at approximately 8.8%. The current fundraising landscape presents challenges for private credit firms, as they attracted only a third of the capital compared to the previous year, making it increasingly difficult for managers to differentiate themselves and capture investor interest. Limited Partner (LP) investors are now demanding more than just a recognized brand; they require a proven track record from teams. Additionally, LPs scrutinize the motivations behind hedge funds entering the private credit space, questioning whether their move is a legitimate strategy or merely an attempt to curtail outflows, which could undermine trust in their intentions. There are indications that some hedge funds have failed to successfully penetrate the private credit market, highlighting the competitive and challenging nature of the sector.