Institutional investors broadly raised their exposure to private credit funds during the first quarter, according to a Reuters analysis of SEC filings.
Major firms like KKR and Blue Owl noted renewed interest from institutions in direct lending, despite recent bankruptcies.
13F filings, as of March 31, show 11.5% of over 6,000 filers increased holdings in 45 publicly traded funds, while only 3.2% cut stakes.
Private credit returns have cooled; KKR and Blue Owl saw negative credit strategies, while Apollo's direct lending funds returned 0.5% versus 8.5% over 12 months.
Alternative asset managers have sought funds from wealthy individuals but now emphasize institutional appetite.
KKR's Scott Nuttall noted a shift in recent weeks with institutions returning to direct lending, calling wealth dollars "very small."
Blue Owl's CFO Alan Kirshenbaum said institutions see an appealing time for credit, and filings showed buyers outpaced sellers.
