The private markets landscape has been a rather difficult one this year, with heightened market volatility, ongoing geopolitical tensions, evolving monetary policy, and the acceleration of AI-driven disruption all causing tension.
Despite this, “today’s uncertainty is creating opportunities across many asset classes, including private markets,” KKR’s investment team wrote in a recent April report.
The current environment is “less about reacting to noise and more about staying focused on fundamentals,” the investment team added.
Dan Pietrzak, partner in private credit at KKR, cautioned against what he calls a common misconception, that private credit is often assumed to mean corporate lending alone. In fact, the investment universe is far broader.
Private asset-based finance, such as aircraft leases and business equipment loans, is a growing segment of the private credit market. Pietrzak pointed to its historically attractive yields, market size, and the potential for diversification.
While recent headlines have spotlighted elevated defaults in private credit—particularly within software, Pietrzak noted that stress has so far been concentrated on specific issuers and is not indicative of a sudden or broader shock in the private credit system.
JPMorgan CEO Jamie Dimon and Federal Reserve Chair Jerome Powell …
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