Schwarzman Bullish on Private Credit, Citing 0.3% Default Rate

  • Schwarzman said private credit business will take more share
  • Firm is planning more retail-investment products in Japan
Steve Schwarzman in Tokyo on March 28.Photographer: Noriko Hayashi/Bloomberg
Lock
This article is for subscribers only.

Blackstone Chief Executive Officer Steve Schwarzman said the private credit industry will expand further even as critics warn of a bubble developing in the asset class.

The booming $1.7 trillion private credit market has come under increasing scrutiny in recent years after growing rapidly in the wake of the global financial crisis and tougher capital restrictions on bank lending. For Blackstone, private credit accounted for the biggest gains among its strategies in the fourth quarter.