Munich Re Says Private Credit Growth Fuels Misallocation Risk

Munich Re, the world’s largest reinsurer, warned that risks in private credit markets have increased as more investors seek outsized returns in the asset class.

Nicholas Gartside, who oversees Munich Re’s €237 billion ($256 billion) investment portfolio including private credit, said while the asset class remains attractive, it’s key that investors trust the money managers they use and their underwriting skills. Munich Re also conducts its own due diligence, looking at the underlying loans before committing to large investments.

“The private credit market has expanded very dramatically over the last few years, fueling the risk of capital being ...