Why Private Equity and Private Credit Are Gaining Attention in Today’s Market Environment

CIO Insights: A Broader Perspective

As Kieran Osborne noted in his opening remarks:

Today’s market environment can best be described as uncertain, with trade policy dominating headlines and causing an uptick in volatility. This environment has underscored the importance of well-diversified portfolios, including asset classes that can zig when the markets zag.”

Kieran highlighted that while broad U.S. equities have struggled year-to-date, private equity and private credit have held up positively, providing essential ballast to Mission Wealth’s broadly diversified client portfolios.

Key Takeaways: What to Ask Yourself or Your Advisor

1. How can I diversify beyond traditional stocks and bonds?
   Alternatives like private equity and private credit offer sources of return that are less correlated to public markets, which may help reduce portfolio volatility.
2. Am I leveraging access to institutional strategies?
   Interval fund structures allow individual investors to access high-quality private investments once reserved for institutions. They balance professional management with built-in liquidity features.
3. What role can private credit play in my income strategy?
   With traditional fixed income challenged by interest rate uncertainty, private credit may offer more compelling yields and lower correlation to rate-driven volatility.
4. Am I focusing on long-term outcomes instead of short-term noise?
   As Philip explained, private equity managers take a longer view—often aiming to triple capital over 3–5 years—rather than reacting to market headlines. This time horizon can offer stability in turbulent times.
5. How do I balance return potential with downside protection?
   While private assets aren’t immune to loss, they often demonstrate shallower drawdowns than public markets. Hasbrouck pointed out that in 2008, private equity declined less than public stocks, and today’s portfolios are even more conservatively positioned.

“If we’re moving into a tougher economic environment, I actually think people are going to appreciate more of the absolute returns that can be generated in private credit and in private equity.”
— Philip Hasbrouck, Managing Director, Cliffwater

Next Steps: Explore Your Options with Private Markets

If you’re considering how private equity or private credit may enhance your portfolio, now is an ideal time to review your investment plan:

1. Schedule a Meeting with Your Advisor
   If you’re already a client, your Wealth Advisor can help you assess your eligibility, time horizon, liquidity needs, and long-term goals.
2. Still have questions?
   Whether or not your question was answered during the live webinar, our team is happy to provide personalized guidance and follow-up.
3. Have a Complimentary Investment Consultation
   If you’re not a current client, schedule a complimentary consultation with an advisor to review your portfolio and discuss how Mission Wealth can help you meet your goals.