April 30, 2026

How to approach alternatives and private credit today

23 minutes

As investors assess both the opportunities and challenges in private credit, host John Bryson is joined by David T. Vincent, CFA, CAIA, Co-Head, Alternatives Intermediary Distribution at Manulife Investment Management, to discuss how the market has evolved and what investors should consider as they look beyond traditional asset classes.

David shares his perspective on the growth of private credit and investor concerns around liquidity and concentration. The conversation also explores asset based finance and hard asset strategies, highlighting the questions investors can ask to better understand risk, structure, and portfolio fit.

1 What’s happening in private credit today?

There’s growing recognition that many alternative strategies are concentrated in floating rate loans to private companies. This creates exposure to corporate credit and interest rates. With rates declining and uncertainty around inflation, recession risk, and consumer spending, investors are reassessing that exposure. What we’re seeing now is that advisors and investors are looking for additional strategies that complement private credit by offering similar return potential with different risk profiles.

2 How would you address concerns of a potential bubble in private credit?

When people see the rapid growth in private credit assets, it raises the question of whether the space is in a bubble. What we’re really seeing is a shift in lending from banks to alternative lenders. While it can feel like sudden growth, it’s largely a shift in who provides capital. Private credit should grow alongside the economy, especially as more companies remain private longer.

3 What alternative strategies may investors be overlooking right now?

The most interest right now is in hard asset strategies. These tend to benefit from inflation, supply chain disruptions, and tariffs. There is a concept often referred to as hard assets with low obsolescence, meaning long lived, tangible assets such as buildings or airplanes. These assets have intrinsic value. In a default, they can often be leased, sold, or repurposed.

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