Coller Capital survey highlights strong private credit demand among limited partners

Michael Schad

Coller Capital, a pioneer in private equity secondaries, has provided a valuable insight into private credit markets with the release of its Winter 2024/25 Global Private Capital Barometer.

The Barometer, which explores the dynamics of private markets, says private credit has been one of the most dynamic areas of the alternative assets market over the past decade, with 37 per cent of respondents to the latest survey saying they plan to increase their allocation.

This report, now in its 20^th year, surveyed 110 private market investors managing a combined $US1.9 trillion in assets across North America, Europe, Asia-Pacific, and the rest of the world.

Nearly half (47 per cent) of the investors plan to keep the same allocation to private credit with only 16 per cent aiming to reduce their investment in this asset class.

Private equity and infrastructure followed closely, with Limited Partners (LPs) intending to increase allocations by 34 per cent and 33 per cent, respectively, while secondaries continue to further cement their place in the alternatives landscape with 45 per cent of LPs saying this strategy now represents a core pillar of their alternative assets program.

Michael Schad, Partner and Head of Coller Credit, said: “The Barometer also identified that about two-thirds of investors were expecting to focus their credit programs and concentrate on a smaller number of credit managers in the next two to three years.

“At the same time, a similar proportion of respondents are likely to back a more limited number of credit strategies.

“Given the abundance of options and continued diversification, it is likely that many have gained ample experience across the strategy, identified their ideal niches, and are content to channel their investment capabilities within these specific areas.

“North American LPs exhibited the strongest inclination towards a more focused group of credit managers, whilst investors from the Rest of the world showed the greatest tilt towards backing a more limited range of credit strategies.”