UK investors who invest in private credit are increasingly turning to asset-based finance over other sectors amid geopolitical tensions, according to a new report.
TwentyFour Asset Management’s Fixed Income Investor Survey 2025 found that of 200 UK institutional investors, many are looking to tweak their private credit holdings, with many looking to asset-based finance.
Read more: Slow uptake expected of private credit in UK ISAs
A majority (55 per cent) of investors surveyed said they “plan to recalibrate their exposure to private credit funds”, with the majority saying they are planning to decrease their use of this asset class in portfolios.
But of investors that confirmed they were still interested in private credit, “most are looking at asset-based lending over other private credit sectors,” the report said, adding that geopolitics continues to weigh on UK institutional investors’ minds” with 61 per cent saying that the environment has shifted their risk appetite.
Read more: TwentyFour Income Fund eyes US CLO market
“It’s no surprise that global trade tensions and broader geopolitical instability have created much uncertainty, yet it’s clear that investors are continuing to direct capital toward fixed income, as elevated yields can not only improve returns, but also give portfolios some protection against volatility,” said Ben Hayward, chief executive of TwentyFour Asset Management.
“In these conditions, we think active managers can really prove their worth by targeting the right opportunities while managing the broader market risks.”
Read more: Quarter of family offices to increase private credit exposure this year
