Private Credit Offers No Extra Gains After Fees, New Study Finds
- NBER paper finds little alpha for investors in overall returns
- It’s hard to find the right benchmark for private-market funds
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A trio of academics has a bold take on the booming $1.7 trillion private credit market: after accounting for additional risks and fees, the asset class delivers virtually no extra return to investors.
In a new study released by the National Bureau of Economic Research, the professors argued that direct lenders on the whole hardly produce any alpha — or extra compensation over broad market benchmarks.