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Bailey McCann, Opalesque New York: Private credit returns continued to outpace many other private markets asset classes in the second quarter, according to new data from MSCI. Senior-debt, mezzanine-debt and distressed-debt funds each returned between 2.1% and 2.5% during the quarter.
Venture-capital funds declined 0.4% and have posted negative returns for eight of the last 10 quarters since their 2021 peak. Buyout and expansion-capital funds posted positive quarterly returns of 1.2% and 1.5%, respectively.
Real-asset funds continued to show mixed performance. While natural-resource funds posted a positive return of 2.4% and infrastructure funds returned 2.1%, MSCI data shows.
According to MSCI's analysis, distributions across many asset classes have slowed or stalled out entirely putting downward pressure on overall performance. But, private credit funds continue to fund new deals and post strong performance.
Holding periods across venture capital, buyout, private real estate and private infrastructure have all increased. Venture capital stands out with average holding period is at a new high of 5.4 years. However there is also more than $200 billion in venture-capital holdings that are into the eighth investment year.
While the exit environment has been difficult for a variety of asset classes, the increase in holding periods suggests that the rate of exits and distributions started to slow well before the covid-19 pandemic and the trend has on...................... To view our full article Click here
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