Adams Street Partners -Tue, 04/23/2024 - 00:35

In Private Credit Manager Selection, the Devil is in the Diligence

Key Takeaways

As private credit popularity rises, investors must be even more discerning. Alpha in private credit derives from loss avoidance, not upside potential
Benign economic and credit conditions over the last decade have allowed many managers to avoid losses, leading to a narrow return dispersion
The benign climate has changed with higher rates, wider credit spreads and slowing revenue growth, all of which is likely to put pressure on many managers’ portfolios
Look for private credit managers with three key characteristics to avoid losses and produce alpha – a proven approach to underwriting, a differentiated approach to originating and winning deals, and a capital base that matches their opportunity set

This information is not investment advice or an offer or sale of any security or investment product or investment advice. Offerings are made only pursuant to a private offering memorandum containing important information. Statements are made as of the date of this release, and there is no implication that the information contained herein is correct as of any time subsequent to such date. References herein to specific sectors, strategies, or investments are not to be considered a recommendation or solicitation for any such sector, strategy, or investment. Past performance is not a guarantee of future results. Projections or forward-looking statements contained in the Paper are only estimates and there can be no assurance that the results set forth in the projections or the events predicted will be attained, and actual results may be significantly different from the projections. Also, general economic factors, which are not predictable, can have a material impact on the reliability of projections or forward-looking statements. Adams Street Partners, LLC is a US investment adviser governed by applicable US laws, which differ from laws in other jurisdictions.

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Contacts

Adams Street Partners is a global investment firm managing a comprehensive suite of private markets investment solutions. The firm provides private equity and private credit strategies to institutional investors, growth capital to innovative companies, and evergreen funds that offer access to multiple strategies through a single, investor-friendly commitment. The firm also supports wealth advisors with private markets solutions structured to be more flexible and accessible than traditional closed-end funds. With over 50 years of experience, Adams Street leverages deep market insights, global relationships, and proprietary data as it seeks to help investors achieve long-term investment goals. The firm is 100% employee-owned, manages $76 billion in assets,* and operates out of 15 offices globally. Visit adamsstreetpartners.com

*As of June 30, 2026. Adams Street Partners’ methodology to calculate Assets Under Management (AUM) is based on fund net asset value (NAV), plus unfunded commitments, plus leverage, but excluding the effect of subscription lines of credit. The prior AUM methodology was based on investor commitments minus commitments to fully liquidated underlying partnerships. Such change in methodology was effective July 2026; however, for periods shown prior to December 31, 2025, Adams Street continues to use the previous methodology. This updated methodology more closely aligns with (i) the amount of assets managed on behalf of investors and (ii) the amount of capital available to make direct and/or partnership investments. Amounts stated by investment advisers in regulatory filings (“regulatory AUM”) have a prescribed methodology, which may, in some circumstances, differ from the methodology such adviser uses for other purposes, including marketing efforts. Additional information is available upon request.

Neelm Hameer
Vice President, Investor Relations
nhameer@adamsstreetpartners.com
+1 773 720 9748

Adams Street Partners, LLC
One North Wacker Drive, Suite 2700
Chicago IL 60606-2823

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