Institutional investors ‘rebalance away from US’
Institutional investors across the world are looking to European private debt as a way of “rebalancing away from North America,” according to private credit investment firm Muzinich & Co.
In a new report, the firm said that “interest from international investors in European private debt continues to grow, particularly from Asia and the Middle East”.
Read more: ‘Persistent institutional demand’ for private credit
“This can be explained in part as a response to a re-balancing away from North American assets by institutional investors,” the firm said.
“While it remains to be seen whether this is a temporary tactical move or part of a longer-term structural shift, the trend has created new relationships and diversified capital sources for European managers.”
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It added that the combination of healthy deal flow, competitive returns and diversification benefits is helping to maintain investor confidence in European private credit.
“The European lower-middle-market private credit sector stands at a point where resilience, adaptability and innovation converge. While macroeconomic and geopolitical uncertainty will continue to have an impact, the fundamentals driving deal activity, investor demand and strategic evolution remain strong.”
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