Based on the search results, private debt funds typically perform well relative to other fixed income investments. Here are some examples:
- Higher yields: Private debt funds offer higher yields than traditional investment-grade debt securities, which is attractive to investors seeking higher returns 1 2 3 .
- Outperformance of benchmarks: Private debt funds have outperformed bond and equity market benchmarks in the cross-section, with high performance dispersion across strategies 1 .
- Lower volatility: Private debt funds have lower volatility compared to public markets, which can make them more attractive to investors seeking stability and predictability in their investments 4 .
- Reduced correlation to public markets: Private debt funds have reduced correlation to public markets, which can make them more attractive to investors seeking diversification 2 .
- Reliable income streams: Private debt funds can provide investors with reliable income streams, as borrowers are contractually obligated to make interest payments and repay the principal 5 .
In summary, private debt funds typically perform well relative to other fixed income investments, with higher yields, outperformance of benchmarks, lower volatility, reduced correlation to public markets, and reliable income streams. As private debt continues to grow as an asset class, it is likely that more investors will be drawn to these benefits.