Man Group addresses five common myths about private credit, including the purported opposition between banks and non-bank lenders; the belief that private credit poses a systematic risk to the global financial system; and the claim that there is little differentiation between private credit lenders.
Private Credit: Dispelling the Myths
Man Group
Matthew Moniot, Putri Pascualy
Research
11 Pages
Key Takeaways
Banks and non-bank lenders collaborate: Private credit often works alongside traditional banks, which may fund or co-invest in these strategies.
Private credit has deep roots: Non-bank lending institutions have operated for centuries, predating the popularity surge post-2008.
Systemic risk concerns are overstated: Structural safeguards and market scale help mitigate risks despite the sector’s growth.