Blackstone Inc.'s Kenneth Caplan said his firm's private credit portfolio is showing remarkably low default levels despite growing scrutiny of the $1.8 trillion industry. Caplan's assessment comes as market observers question the sustainability of leveraged lending practices that have fueled rapid growth in the sector.

The private credit market has expanded dramatically in recent years as traditional banks pulled back from riskier lending. This shift has benefited firms like Blackstone, which has positioned itself as a major alternative lender. Caplan's comments suggest the portfolio's performance remains resilient even as broader market concerns mount.

While specific default rates weren't disclosed, Caplan's assessment provides rare insight into how major players are navigating current market conditions. The comments may help reassure investors about the stability of private credit investments at a time when some analysts warn about potential stress in leveraged lending markets.