MONTHLY COMMENTARY | OCTOBER 2025
The Case for Private Credit in 2025: Rising Rates
Create Opportunity
Despite ongoing macroeconomic uncertainty,
direct lending markets remain robust with attractive risk-adjusted returns. Senior secured loan
spreads averaging L+500-700bps provide compelling value compared to public markets. We expect
continued strong performance driven by: 1) Limited new supply from traditional bank lenders, 2)
Stable credit quality among middle-market borrowers, and 3) Protection from floating rate
structures in a potentially higher-for-longer rate environment.
QUARTERLY OUTLOOK
Q4 2025 Alternative Assets Outlook: Positioning
for Resilience
Our outlook for Q4 emphasizes defensive
positioning across private credit, selective opportunistic real estate, and infrastructure
assets with inflation-linked cash flows. Key themes include focusing on senior-secured lending,
avoiding office exposure, and increasing allocations to digital infrastructure and renewable
energy.
SPECIAL REPORT
The Digital Infrastructure Boom: Investment
Implications of AI Adoption
Generative AI adoption is accelerating demand
for data center capacity, fiber connectivity, and power infrastructure. We analyze the
investment opportunity across the full value chain and identify optimal entry points for
institutional capital.