Private credit primer

April 2024

This primer introduces the asset class commonly known as private credit, or private debt. It attempts to answer the types of questions institutional investors would be likely to ask when considering an investment in this area.

This primer is limited to an overview of private credit. It discusses the characteristics of the asset class and reasons for investing in private credit. It also contains definitions of the major sub-strategies, and it presents an analysis of major return, risk, and implementation considerations for institutional investors. It does not suggest a target allocation, nor does it specify how to implement an investment program. These issues are investor specific and should be addressed by the decision-makers overseeing the allocation.