Public Private The benefits of a blended approach to public-private credit

13 August 2026

Since the Global Financial Crisis, credit markets have undergone a profound structural transformation.

 

As post-crisis regulations curbed banks' lending appetite, non-bank lenders stepped in, and private credit rapidly matured into a mainstream financing channel alongside public debt. Today, borrowers can access whichever market offers the best terms, blurring the historical divide between the two and turning what were once separate markets into a single, continuous credit spectrum.

 

This evolution challenges the traditional siloed approach that treats public and private credit as standalone allocations. A misleading narrative has emerged, pitting the two against each other in what is a false choice. In reality, many investors can benefit from both.

 

Combining public and private credit within a single portfolio broadens the opportunity set and creates the potential for enhanced income, while helping to strengthen portfolio resilience across market cycles. Public credit contributes scale, liquidity, and daily price transparency; private credit can offer access to middle-market borrowers, bespoke structures, and an illiquidity premium.

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