Secondary buyers are increasingly targeting private-credit assets as wealthy investors seek exits from interval funds and business development companies. The market is seeing a notable uptick in discounted secondary deals, according to industry sources. This trend reflects growing pressure on investors who need liquidity amid mounting redemptions in alternative investment vehicles.

Interval funds and BDCs have attracted significant capital in recent years, offering high yields in a low-interest-rate environment. However, the combination of rising interest rates and economic uncertainty has created challenges for these closed-end structures. Investors who locked in capital for extended periods are now finding limited redemption options, pushing them toward secondary markets.

Secondary buyers see opportunity in acquiring distressed private-credit portfolios at discounts. These transactions allow original investors to exit while providing new buyers potential upside if credit markets stabilize. The secondary market activity could accelerate if redemption pressures intensify, particularly in sectors like real estate and middle-market lending where private-credit funds have concentrated their investments.