{"id":621154,"date":"2026-06-04T17:35:13","date_gmt":"2026-06-04T17:35:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/621154\/"},"modified":"2026-06-04T17:35:13","modified_gmt":"2026-06-04T17:35:13","slug":"private-wealth-investors-pull-back-from-private-credit","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/621154\/","title":{"rendered":"Private Wealth Investors Pull Back From Private Credit"},"content":{"rendered":"<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\">While asset managers <a class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_link\" href=\"https:\/\/www.wealthmanagement.com\/alternative-investments\/asset-managers-rias-try-to-reassure-investors-on-private-credit\" target=\"_self\" data-discover=\"true\" rel=\"nofollow noopener\">work overtime to reassure investors private credit is still a solid bet<\/a>, data from alternative investment platform iCapital shows private wealth investors have become hesitant about the sector.\u00a0<\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\">In its Alternatives Decoded report for June 2026, iCapital revealed the flow of funds to private credit on the platform had shrunk over the past year, from 41% of all flows in the first quarter of 2025 to 18% in the first quarter of 2026. Most of that money seems to have been reallocated to private equity, which rose from 35% of fund flows to 51% over the same period.<\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\">\u201cPrivate wealth clients shifted away from private credit and into private equity, infrastructure and hedge funds in late 2025 and early 2026,\u201d iCapital researchers wrote. \u201cGrowth and inflation-protected strategies (infrastructure) are the clear share gainers on the iCapital platform.\u201d<\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\">In addition, investors adjusted where within the broader private credit sector they allocated capital. The share of funds dedicated to distressed and opportunistic private credit investments fell from 17% in 2023 to just 3% in 2025. Last year, the overwhelming majority of private credit allocations were to direct lending investments, at 89%.<\/p>\n<p data-component=\"related-article\" class=\"RelatedArticle\">Related:<a class=\"RelatedArticle-RelatedContent\" href=\"https:\/\/www.wealthmanagement.com\/alternative-investments\/partners-caps-evergreen-fund-redemptions-as-requests-rise\" target=\"_self\" data-discover=\"true\" rel=\"nofollow noopener\">Partners Caps Evergreen Fund Redemptions as Requests Rise<\/a><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\">There has also been a modest uptick in allocations to real assets, increasing from 13% at the start of last year to 17% in the first quarter of 2026. Within the broader real assets sector, <a class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_link\" href=\"https:\/\/www.wealthmanagement.com\/alternative-investments\/asset-managers-launch-infrastructure-funds-for-the-wealth-channel\" target=\"_self\" data-discover=\"true\" rel=\"nofollow noopener\">infrastructure is currently experiencing rising flows<\/a>, at 58% in the first quarter of 2026, up from 51% at the end of 2025 and 46% in the first quarter of that year. Over the same time period, fund flows to real estate declined from 53% to 41%.<\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\">iCapital\u2019s report also revealed that at year-end 2025, the composition of funds on its platform was <a class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_link\" href=\"https:\/\/www.wealthmanagement.com\/alternative-investments\/morningstar-evergreen-fund-aum-grew-by-25-in-2025\" target=\"_self\" data-discover=\"true\" rel=\"nofollow noopener\">roughly evenly split between open-end<\/a> and closed-end structures, at 43% vs. 42%. That\u2019s a significant change from just two years ago, when closed-end structures accounted for 50% of funds on the platform compared to 34% for open-end vehicles.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"While asset managers work overtime to reassure investors private credit is still a solid bet, data from alternative&hellip;\n","protected":false},"author":2,"featured_media":621155,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-621154","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/621154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=621154"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/621154\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/621155"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=621154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=621154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=621154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}