Private credit for wealth investors: Communication, liquidity design, and manager selection

Private credit is an area often plagued by misunderstandings due to the complex nature of its operations and market dynamics. This was one of the key discussions at FundForum 2026 where Ros Price, Managing Director, Head of Private Wealth EMEA at Blue Owl, shared valuable insights on effectively communicating with clients about the nuances of private credit.

Understanding the headlines vs. reality

Headlines often emphasise the broader risks associated with private credit, sometimes overshadowing the specifics available to private individuals. Price notes that the reality is far more nuanced. This complexity highlights the need for transparency and education when interacting with clients. By demystifying underwriting standards, default experiences, and the discipline involved in credit selection, financial professionals can guide clients more effectively.

Why investor education is necessary in private markets

Education plays a crucial role throughout an investor's journey, not just at the outset. Continuous learning and support help clients navigate the ever-evolving landscape of private credit. In today's world, where clients expect more accessibility and information, ongoing education becomes a linchpin in managing expectations align with experiences they encounter elsewhere in their lives.

Liquidity challenges in private markets

A significant shift in private markets has been the evolution from locked-up vehicles to evergreen structures offering periodic liquidity. A critical challenge lies in harmonising liquidity offerings with the profile of underlying assets. Problems can arise from mismatches, particularly as portfolio companies remain private for longer durations. Getting this balance right is essential not only for end investors but also for maintaining market stability.

Why manager selection is crucial

Manager selection has grown in importance due to the increasing significance of operational aspects like reporting, transparency, and service levels. Managers must understand and cater to what is crucial for end investors, including delivering stable returns and minimising default rates. Additionally, scale plays a vital role, with larger managers potentially offering greater opportunities due to their extensive networks and geographical reach. This scope allows for a diversified portfolio and captures emerging opportunities.

Private credit demand

Fundamental drivers for private credit demand remain strong. Banks retreating from direct lending underscore the ongoing need for the certainty and speed that direct lending offers. Furthermore, investors' need for yield continues to steer them towards private credit as an essential part of their strategy for achieving desired net returns.