A new index for business development companies (BDCs) has been launched by alternative investment platform CAIS in partnership with index provider Solactive, aiming to boost transparency in the private credit sector.
The Solactive CAIS Private Credit BDC Index – dubbed CAISCRED – enables financial advisers to track the industry by measuring the performance of 40 perpetual non-traded BDCs, representing $130bn in private credit net assets and more than 8,000 underlying loans.
CAISCRED is independently calculated by Solactive applying a rules-based index calculation methodology.
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“Advisor demand for registered products continues to grow, but until now, advisors have often relied on fragmented benchmarking and data analytics when analysing private market allocations,” said Neil Blundell, chief investment officer at CAIS Advisors. “We partnered with Solactive, a leading index provider and recognized innovator, because of our shared vision for solving this gap in the market. This index series seeks to deliver transparent, reliable benchmarks that allow advisors to better evaluate, track, and compare private market allocations.”
CAISCRED marks the first step in the two firms’ plans for a broader index series that aims to deliver standardised, transparent benchmarks for private market allocations.
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“CAISCRED sets a new standard for how private credit exposure is measured,” said Steffen Scheuble, chief executive of Solactive. “By combining Solactive’s experience in index construction with CAIS Advisors’ deep understanding of private markets, we’re delivering a benchmark that advisors can fully utilize. This is just the first step in a broader series of indices designed to bring greater transparency and precision to private market investing.”
Blue Owl is among the private credit firms participating in the index.
“We’re proud to be included in this private credit index designed to give independent advisors the same kind of transparent, consistent benchmarks they’ve long relied on in public markets,” said Sean Connor, chief executive and president of global private wealth at Blue Owl. “This is a meaningful step forward for the entire wealth management community.”
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