HomeNews & BlogMFA statement on the benefits of private credit for financial stability

MFA statement on the benefits of private credit for financial stability

Washington, DC — Bryan Corbett, President and CEO of the MFA, issued the following statement about the benefits of private credit for financial stability in response to scrutiny the private credit industry received at today’s House Financial Services Committee hearing on Basel III Endgame:

“Private credit does not have a government backstop and presents no taxpayer risk, unlike banks. Private credit managers have investors with long time horizons and are already well regulated by the SEC. We’ve seen time and again the stabilizing effects of diversified lending activity. It keeps markets safer, and ensures small and mid-sized businesses have access to capital. Undermining the important role of private credit is short-sighted and harmful to the economy.”— 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 $5.5 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 175 member fund managers, including traditional hedge funds, credit funds, and crossover funds, that collectively manage nearly $3.2 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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