Private Credit Secondaries Market Analysis

This document is a technical report that outlines the growth and dynamics of the private credit secondaries market. It describes how the evolution of financial markets has led to the emergence of this market, particularly following the global financial crisis. The report details the opportunities for investors in purchasing illiquid private credit fund investments, emphasizing the supply-demand imbalance that currently exists. It notes that the private credit secondary market has expanded significantly, with a reported growth of 30 times since 2012, yet remains under-capitalized compared to other private market sectors. The document highlights the increasing interest from institutional investors in private credit strategies as a means of enhancing portfolio returns and managing liquidity needs. It also discusses the diverse investment opportunities available within the private credit secondaries market, including the purchase of loans and debt portfolios, and the potential for attractive risk-adjusted returns. Additionally, the report addresses the risks and considerations that investors must evaluate when engaging in secondary sales.