Private credit is a dynamic and evolving component of the global financial markets. In this briefing, Huw van Steenis, Vice Chair of Oliver Wyman, and Emma Matebalavu, Partner and head of Global Financial Markets at Clifford Chance, discuss the latest trends shaping private credit. Their conversation explores how insurance and wealth are driving new growth, the rise of innovative semi-liquid fund structures, and the strategic reassessment of credit as an investment in a higher interest rate environment.

Key takeaways:

• Insurance and wealth are transforming private credit: The insurance sector and wealth market have become major sources of capital, fundamentally changing the nature and scale of private credit investments.
• Semi-liquid structures are expanding access: Innovative fund formats, like evergreen and interval funds, are making private credit more accessible to a broader range of investors, although the market remains experimental and subject to regulatory scrutiny.
• Strategic reassessment of credit: Rising interest rates have prompted institutions and individuals to reconsider credit allocations, with private credit offering attractive yields and new opportunities for portfolio diversification.