What to expect from private credit in a high rates environment

As interest rates rise and public market volatility increases, investors are attracted to private credit as a diversified source of steady income and uncorrelated returns. The current environment of higher and more volatile interest rates will reveal the weaker lenders, meaning that leading managers can be selective in this environment, says Nuveen. The firm says to expect strong demand from borrowers and LPs for top private credit managers who have scale, well-established sponsor relationships and proven track records.