Credit index for business development companies privately debuts
In a move aimed at boosting transparency and improving comparability in the private credit sector, CAIS and Solactive have launched the Solactive CAIS Private Credit BDC Index (CAISCRED). This groundbreaking index tracks the performance of non-traded, perpetual-life Business Development Companies (BDCs) regulated by the U.S. Securities and Exchange Commission.
The index, which includes 40 such BDCs, represents approximately $130 billion in private credit net assets and over 8,000 underlying loans. By providing a standardized, transparent benchmark, CAISCRED addresses the previously fragmented data landscape for private credit investments.
Independently calculated by Solactive using a rules-based index calculation methodology, CAISCRED is rebalanced quarterly to reflect the net performance of this universe of private credit BDCs. This ensures that the index remains current and relevant, providing financial advisers with a reliable tool to track the industry.
Blue Owl, a prominent player in the private credit space, is among the firms participating in the CAISCRED index. Sean Connor, CEO and President of Global Private Wealth at Blue Owl, expressed pride in being included, stating that the index provides independent advisors with transparent, consistent benchmarks similar to public markets.
Steffen Scheuble, CEO of Solactive, echoed Connor's sentiments, stating that CAISCRED sets a new standard for private credit exposure measurement. Neil Blundell, chief investment officer at CAIS Advisors, added that advisor demand for registered products is growing, and CAISCRED aims to deliver transparent, reliable benchmarks to better evaluate, track, and compare private market allocations.
The launch of CAISCRED is significant, not just for the private credit sector, but for the entire wealth management community. As Sean Connor noted, this index represents a meaningful step forward, providing a fully usable benchmark that fills a significant gap by offering industry participants a clear and standardized reference point for private market allocations in private credit BDCs.
[1] CAIS Press Release: [Link to Press Release] [2] Solactive Press Release: [Link to Press Release] [3] CAISCRED Methodology Document: [Link to Methodology Document] [4] Fitch Ratings Warning about New Headwinds for BDCs and Private Credit: [Link to Fitch Ratings Warning]
Financiers can now utilize CAISCRED as a transparent benchmark to track the industry performance of private credit Business Development Companies (BDCs) with approximately $130 billion in net assets, as this index offers a clear and standardized reference point. The index, launched by CAIS and Solactive, addresses the previously fragmented data landscape in the private credit sector, providing financial advisers with a reliable tool to evaluate, track, and compare private market allocations in private credit BDCs.
