Distressed debt and special situations funds show somewhat higher returns than direct lending funds, but carry significantly higher credit risk.
Risk/Return by Strategy (Vintage 2003-2013 Funds)
Source: Preqin Private Debt Online; sphere size represents market capitalization
Private Credit Defaults 101: Back to School
As Labor Day approaches, the unofficial end of summer is upon us. But, before we get too sad, there is also the familiar back-to-school energy.