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Event Debtwire Private Credit Forum New York
US private credit eyes return of contrarians
by Lisa Fu
Retail investors may have retreated from private credit, but attendees at Debtwire’s Private Credit Forum New York say some institutional investors are now pivoting back to the sector
As private credit braves a cycle of negative sentiment, investors and managers at this summer’s Debtwire Private Credit Forum New York 2026 discussed how investment opportunities may open up to those with something of a contrarian streak.
This year’s conference took place at Convene Brookfield Place and allowed attendees to meander down a floor and take advantage of sister event, Infralogic Investors Forum New York 2026, which was held the same day. But while infrastructure and infrastructure debt may be the hot new sector as the AI boom drives demand for data centres, the private credit crowd played it cool.
Many of the Debtwire Private Credit Forum panellists and attendees stressed that the negative headlines plaguing the industry and the recent surge in exit requests seen at semi-liquid US direct lending funds were not indicative of systemic risk. Affluent individual investors exiting the once popular perpetual non-traded business development companies account for a relatively small portion of the private credit industry.
Retreat may create discounts
The gloominess around the asset class, which until recently enjoyed explosive popularity, may not be the worst thing that could happen. Some investors believe they can extract opportunities by leaning into private credit just as many appear to retreat.
Rather than shy away, asset managers with secondaries investment strategies are getting ready to buy exposure to private credit assets. As public sentiment turns against the sector, secondaries investors are hoping for a change in deal flow and discounted pricing.
“The pricing environment changed with all the headlines in the market… if you have a negative sentiment environment like we’re in right now, that’s when you tend to see headline-driven selling from the institutional LP base,” said Sean Gillespie, principal at HarbourVest Partners, on a panel.
When the market turns, secondaries investors tend to see more LPs try to sell their stakes in private funds. This can potentially drive down pricing and create discounted buying opportunities for secondaries firms.
“If pricing softens a little bit, that’s fantastic for us,” added another secondaries representative on the panel. Getting exposure to good assets at a discount is a way for secondaries firms to drive up investment returns for their own funds.
They’re now excited to allocate against the sentiment
Brian Stewart
Global co-head of corporate credit
Fortress Investment Group
Others hope the capital pull-back by individual investors cools down competition and results in better private credit investment opportunities.
“We’ve really experienced a pivot in sentiment from the institutional investors in response to the changing capital flows this year from the retail wealth channel,” said Brian Stewart, global co-head of corporate credit at Fortress Investment Group, speaking on a panel.
Institutional investors allocated much of their portfolios to traditional corporate direct lending over a number of years, but the enthusiasm died down in 2025 given the competition. With the pivot, some institutions are more interested in direct lending again, Stewart said.
“They’re now excited, I think, to allocate against the sentiment,” he added.
Pension investor shows the way
APG Asset Management, one of the world’s largest pension investors, with around EUR 600bn in AUM, announced earlier this year that it is increasing exposure to private credit despite the negativity.
“More recently, we have separated from the fixed income group and become a direct allocation for APG,” said Amir Madden, senior portfolio manager for alternative credits. “The allocation from our main investor is expected to increase to a larger level from where we currently are, and we intend to do it strategically but also not missing out on opportunities that may present themselves.”
The Dutch institutional investor plans to invest across various private credit sub-strategies, not just direct lending, to find returns throughout the market cycle, Madden added.
