Credit tops non-traditional offering for PE firms

Private equity managers are looking to expand their offerings into credit.

Private credit is the most common new strategy being launched by private equity fund managers, according to research from consultancy EY.

Its survey of private equity CFOs found that 35 percent of firms have launched private credit as a new, non-traditional strategy.

The main reasons for launching new strategies are to attract additional capital from investors that are fully allocated to traditional private equity.

But EY says adding new products can expose firms to additional competition and notes that many hedge funds are also branching out into private equity.