Institutional confidence in private credit remains intact despite recent volatility and negative media sentiment, according to a report by Bloomberg citing comments form Arcmont Asset Management chief executive Anthony Fobel.
Speaking at the SuperReturn conference in Berlin, Fobel argued that underlying portfolio performance in private credit continues to be resilient, with default rates remaining low and institutional investors maintaining steady allocations even as retail investors have become more cautious.
He noted that recent redemption pressures—particularly in semi-liquid private credit vehicles—reflect growing discomfort among some investors with the illiquidity of the asset class rather than evidence of deteriorating credit fundamentals. In his view, much of the public narrative has overstated stress in the sector compared with what is being observed in institutional portfolios.
Fobel also questioned the suitability of broad retail participation in private credit, describing it as fundamentally an illiquid strategy better aligned with long-term institutional capital. He suggested that the recent wave of withdrawal requests highlights structural mismatches between product design and investor expectations.
The remarks come amid a period of heightened scrutiny for the private credit industry, following fund-level liquidity management measures in both the US and Europe. Some managers have implemented redemption caps after experiencing elevated outflows, raising questions about liquidity risk in semi-open-ended structures.
Despite these pressures, Fobel said the sector’s institutional base remains strong and continues to provide stable capital support. He added that many allocators with direct access to underlying fund performance data do not share the more pessimistic view reflected in parts of the media.
Looking ahead, he projected significant growth for the asset class, estimating that the private credit market – currently valued at around $1.8tn – could expand to as much as €4tn by 2030, driven by continued demand from institutional investors and the ongoing shift toward private markets financing.
