Based on the search results, private debt funds have historically performed well during market upturns compared to other types of alternative investments. Here are some examples:
- Outperformance of benchmarks: Private debt funds have outperformed bond and equity market benchmarks in the cross-section, with high performance dispersion across strategies and performance quartiles 1 2 .
- Lower volatility: Private debt funds have lower volatility compared to public markets, which can make them more attractive during market upturns 3 .
- Reduced correlation to public markets: Private debt funds have reduced correlation to public markets, which can make them more attractive during market upturns 3 .
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Buy-and-hold strategy: Private debt funds are typically buy-and-hold investments, which can make them more attractive during market upturns as investors can hold onto their investments until the market reaches its peak 4 .
In summary, private debt funds have historically performed well during market upturns compared to other types of alternative investments, with outperformance of benchmarks, higher risk-adjusted returns, lower volatility, reduced correlation to public markets, and a buy-and-hold strategy. However, investors should carefully consider the risks associated with private debt investments and their own investment objectives before investing in private debt funds.