MSCI: Private Credit Outperforms in Q2, VC Sets Holding Age Record

MSCI reports that private credit continues to perform strongly, outpacing returns from private equity and private real assets in the second quarter of 2024.

In an analysis posted to its website, MSCI said senior, mezzanine, and distressed debt funds all delivered returns between 2.1% and 2.5%, whereas venture capital funds declined by 0.4%. Buyout and expansion capital funds posted moderate gains of 1.2% and 1.5%, respectively. Real estate funds faced their ninth consecutive quarterly decline due to challenges linked to interest rates and office utilization.

The report also revealed that holding periods for key asset classes have increased from their 2021 lows, with venture capital reaching a weighted-average holding age of 5.4 years, a record for the asset class. The longer holding periods highlight an environment where asset managers face challenges in realizing returns amid uncertain market conditions.

View the report here.

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