(Bloomberg) -- Firms that cater to the world’s ultra-wealthy are planning to boost their allocations to private credit, according to a survey of 250 institutional investors in the UK, Europe and the Middle East.
The once niche market has become a sought-after option for investors. Family offices, private banks, foundations and endowments are likely to boost allocations to the $1.7 trillion asset-class over the next two years, the study from asset manager PGIM Inc. showed.
A majority of respondents at insurers and pension funds expected to keep their allocations to private credit, reflecting investment limits. Alternatives made up about 25% of the surveyed firms’ portfolios, with private credit accounting for 11% of that allocation.
Overall, 44% of respondents said they’re likely to increase holdings of private credit, followed by private real estate debt at 42% and sustainable equity at 40%.
--With assistance from Kat Hidalgo.
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