Seer Capital Management is accelerating acquisitions of significant risk transfer (SRT) instruments as institutional investors seek alternatives to turbulent private credit markets. The New York-based hedge fund aims to capitalize on growing demand for structured credit products that offer loan exposure with reduced volatility.

SRTs allow banks to offload loan portfolio risks while providing investors predictable returns. This push comes as private credit faces its worst slump in years, with rising defaults and shrinking valuations pushing allocators toward more secure fixed-income options. Seer’s strategy targets pension funds and insurers hesitant to deploy fresh capital into direct lending.

The move reflects broader credit market realignment as yields stabilize. While SRT volumes remain modest compared to private credit’s $1.7 trillion ecosystem, specialists like Seer Capital see arbitrage opportunities as traditional lenders retrench. Competitors may follow suit if early transactions prove resilient during economic uncertainty.