KKR releases “Regime Change: The Benefits of Private Credit in the ‘Traditional’ Portfolio”

KKR has released Regime Change: The Benefits of Private Credit in the ‘Traditional’ Portfolio by Henry McVey, CIO of KKR’s Balance Sheet and head of Global Macro and Asset Allocation (GMAA), and Racim Allouani, head of Portfolio Construction, Investment Risk Management and Quantitative Analysis at KKR.

The latest Insights piece follows the publication of Regime Change: Enhancing the ‘Traditional’ Portfolio, which urged investors to reexamine the traditional 60/40 portfolio construction model to protect their pricing power in a new investing environment. In the new piece, McVey and Allouani continue to assert that increasing allocations to more inflation-resilient assets such as private credit, infrastructure and real estate can enhance risk-adjusted returns over the long term. They also note that the case for allocating assets to private credit is even stronger now than it was earlier this year.

“We continue to believe that, in th