The Private Credit Paradox | BDC Struggles Raise Questions About Retail Access

Firms including KKR, BlackRock, and Apollo have been vocal advocates for expanding private credit access to everyday investors, framing it as a matter of financial inclusion. The argument goes that ordinary savers deserve the same opportunities as pension funds and endowments.

But the BDC market tells a more complicated story. While the S&P; 500 has gained roughly 16% this year, a VanEck ETF tracking BDC stocks has declined nearly 6%. Several prominent funds are down by double digits, with KKR's flagship BDC losing approximately a third of its value.