Survey: Private credit most attractive asset class for family offices

Marcus Baram
Author Marcus Baram

Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.

Mar 27, 2024
9 months ago
Private_credit

Six in 10 family offices want to increase their exposure to private credit in 2024, with only 7%  of them aiming to reduce their exposure, according to a new report by Hedgeweek.

The next most popular asset classes for family offices are private equity (35%) and real estate (25%), followed way down the list by equities (9%) and cash (2%).

“The rising interest in private credit within our asset-allocation strategy is driven by several factors,” said Bruno Schneller, managing director at INVICO Asset Management, a family office and wealth manager in Zurich who was quoted in the report. 

“Firstly, private credit offers attractive risk-adjusted returns, especially in an environment where traditional fixed-income yields may be low. Additionally, private credit provides diversification benefits and can offer a hedge against market volatility. The ability to structure bespoke financing solutions also allows for better alignment with our investment objectives and risk appetite.”

Marcus Baram
Author Marcus Baram

Marcus Baram is a contributing editor at Crain Currency, where he covers the intersection of finance and politics. Prior to joining Crain Currency, Baram was a staff writer at Fast Company and an editor at Huff Post. He has also written for outlets such as The New York Times, The Atlantic, and Vice. Baram is an expert on economic policy and has a deep understanding of the ways in which politics shapes the global financial system. In his role at Crain Currency, he brings a unique perspective to the complex and ever-evolving world of finance. With his keen analysis and clear writing, Baram helps readers make sense of the important issues impacting the economy today.