Framework of Alternatives: Private Credit

Constantine (Cos) Braswell, from Callan's Alternatives Consulting Group, delves into the private credit asset class. This course  outlines major inflection points in the private credit market from 2009 to 2022, discusses Callan’s approach to private credit investing, and distinguishes between various sub-strategies such as direct lending, real estate lending, specialty finance, and distressed debt. Braswell compares private credit with high-yield bonds, presents Callan's capital market assumptions and expectations, and explores different fund structures like closed-end drawdown and evergreen. The session concludes with a detailed case study on a pension fund, focusing on objectives, framework, strategy diversification, and implementation. Key takeaways include the impact of financial regulations on private credit growth, the importance of diversification, and expected returns vis-à-vis public debt markets.

Course time: 45 minutes