Brussels, Belgium — MFA issued the following statement in response to the Financial Stability Board’s (FSB) report on private credit published today:
“We appreciate the FSB’s thoughtful analysis on the private credit industry. As the report notes, private credit is a vital and growing source of long-term, flexible financing for businesses worldwide, supporting jobs, investment, and economic growth. Its structure, which features committed long-term capital, limited leverage, and no daily redemption pressures, mitigates systemic risk and limits interconnection with the broader financial system. Private credit operates under a regulatory regime that is fit for purpose and proportionate to its distinct risk profile.” — Jillien Flores, MFA Chief Advocacy Officer
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About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, 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 it, 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 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
