Bloomberg | New Private Credit Gauge Shows Returns Beating Leveraged Debt

Apr 2024

Originally posted by Bloomberg on March 28, 2024.

According to Lincoln’s European Senior Debt Index (ESDI), the private credit industry in Europe has performed better than leveraged loans for the past five years. Private credit median returns were 8.1%, which compares with 4.9% in leveraged loans.

Investors are putting funds to work in the private credit market due to its higher returns. However, this landscape has less data available for investors as private credit funds hold onto their loans and trading is limited.

“The index is a useful data point for limited partners looking at private credit, which is still in a period of strong growth in Europe,” Richard Olson, Managing Director and co-head of Lincoln’s European Valuations & Opinions Group, commented,

The ESDI showcases data from more than 300 companies and approximately €55 billion of assets.

View additional insights in the original Bloomberg terminal article.

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