The following are key takeaways from our Credit & Markets Q4 Review and 2025 Outlook.
In 2007, Steve Jobs introduced the iPhone, changing how we connect, work, and interact with the world. It wasn’t just a new device—it was a revolution. Today, we see a similar shift happening in credit markets. Traditional, siloed products are giving way to diversified, multi-asset credit solutions—much like how the iPhone replaced single-purpose devices with an all-in-one platform. In an evolving macroeconomic landscape marked by geopolitical tensions, tariffs, and rising bond yields, building a resilient portfolio requires adaptability and income diversification.
While credit markets have been evolving for decades, we see 2025 as a pivotal moment. We are seeing a trend towards a unified investment approach, blending multi-asset solutions across credit and equity, public and private. Just as the iPhone integrated multiple functions into a seamless user experience, customized portfolio solutions are emerging as a new paradigm in capital deployment. These strategies are not just standalone solutions—they complement each other within a diversified portfolio. At KKR, we believe credit has moved from a “nice to have” to a “must have” for investors navigating today’s complexities. Just as the App Store unlocked new possibilities, integrating diverse credit strategies can provide clarity, agility, and long-term opportunity in an ever-changing market.
Here are five key things we think are important to understand about the evolution of private credit:
