HomeNews & BlogMFA Statement in Response to the Brown-Reed Letter on Private Credit

MFA Statement in Response to the Brown-Reed Letter on Private Credit

WASHINGTON, D.C. — Today, in response to the letter from Sens. Jack Reed (D-RI) and Sherrod Brown (D-OH) calling for increased scrutiny of private credit, Managed Funds Association (MFA) issued the following statement from its President and CEO, Bryan Corbett:

“Private credit enhances financial stability and empowers economic growth. Alternative asset managers have filled the void left by banks by providing capital to small and midsize businesses nationwide. The growth of private credit limits risks in the banking system because the capital provided by credit funds comes from institutional investors, not depositors with a government backstop. Increased scrutiny of private credit is misplaced. The SEC already has a robust regulatory regime for the industry that grants the regulator insight into the activities and health of funds.” — Bryan Corbett, MFA President and CEO


About the Global Alternative Asset Management Industry

The global alternative asset management industry, including hedge funds, credit funds, and crossover funds, has assets under management of $4 trillion (Q4 2022). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.

About Managed Funds Association

Managed Funds Association (MFA), based in Washington, DC, New York, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 170 member firms, including traditional hedge funds, credit funds, and crossover funds, that collectively manage nearly $3 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time.

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