A New Lens on Private Credit: Factor-Based Risk for Total Portfolio Analytics

Private credit has become a fast-growing allocation for asset owners, offering diversification and return potential but also introducing unique risks that are often difficult to measure. Traditional approaches relied heavily on proxies or assumptions, which can obscured how private credit interacted with other asset classes in the portfolio. 

On November 12, MSCI experts hosted an insightful webinar that shared a factor-based approach to analyzing private credit in the context of the total portfolio. The team introduced the new Private Credit Factor Model and demonstrated how it complemented existing frameworks for private equity, real estate, and infrastructure.

The session included a live demonstration of the model in practice, showing how purpose-built analytics provided more accurate risk estimates and supported improved risk budgeting and allocation decisions.

Agenda 

• Opening Remarks: Why private credit was becoming central to institutional portfolios 
• Private Assets in the Total Portfolio: Integrating public and private markets in a unified risk framework 
• Introducing the Private Credit Factor Model: Design principles, factor structure, and data foundations 
• Model Demonstration: How the factor model can sharpened risk attribution and enhanced risk budgeting 
• Q&A