Pension funds and endowments make up nearly 50% of private credit fund investors

Pension funds and endowments combined for 49% of the number of investors in U.S. private credit funds, according to the International Monetary Fund's Global Financial Stability Report published this month. Private and public pension funds accounted for 28% and foundations and endowments were 21%.

Private credit funds have spread their investments across sectors. Information technology, business services and products, and financial services had the largest exposures as of October 2021. However, while there has been sector diversification across the asset class, Fitch Ratings notes that individual funds tend to have greater exposure to individual credits.

Private credit hiring activity has remained brisk this year. Plans have made 76 hires with mandates totaling $8.9 billion compared with 82 and $9.7 billion for all of 2022. In the year-ago period, there were 21 hires that totaled $1.6 billion.