Investors are showing a preference for private equity over private credit this year, according to iCapital CEO Lawrence Calcano.

This shift in investor preference can be seen in the allocation of assets. In the third quarter, 45% of assets were allocated to private equity strategies, while 34% were dedicated to private credit. This marks a change from the first half of the year, where private credit strategies attracted 44% of subscription flows compared to 33% for private equity.

The trend observed by iCapital, which manages over $200 billion in alternative assets, reflects a growing confidence in private equity as a more attractive investment option in light of changing economic conditions.