Navigating Manager Selection Risk in Private Credit

Private credit remains attractive for enhanced returns, but the article highlights a key risk: manager selection. The 54 constituents in the VettaFi Private Credit Index showed dramatic performance dispersion in 2025, underscoring that outcomes can vary materially across managers within the same asset class. The message is cautionary rather than alarmist and is more relevant to asset allocators than to broad market pricing.

Analysis

Private credit remains attractive for enhanced returns, but the article highlights a key risk: manager selection. The 54 constituents in the VettaFi Private Credit Index showed dramatic performance dispersion in 2025, underscoring that outcomes can vary materially across managers within the same asset class. The message is cautionary rather than alarmist and is more relevant to asset allocators than to broad market pricing.