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MSCI Launches Private Credit Factor Model

On September 4, 2025, MSCI Inc. (NYSE: MSCI) announced the launch of its Private Credit Factor Model, aimed at addressing the lack of transparency in the private credit market. This innovative model is designed to assist investors in evaluating the long-term risks associated with their entire portfolios.

As the allocation of assets in the private credit market continues to rise, investors face significant challenges due to a shortage of data and insights regarding their investments. This deficiency makes it increasingly difficult to grasp the risks posed by private investments across their portfolios.

The private credit market has experienced explosive growth over the past decade. This surge has primarily been driven by the heightened demand for yield and structural changes in capital markets. However, the development of tools to manage these assets has not kept pace with their growth. Institutional investors, such as pension funds, are under pressure from stakeholders like members and boards to enhance the transparency of these often obscure assets.

The Private Credit Factor Model has been devised to tackle these challenges, providing a systematic, factor-based framework that integrates private credit into modern portfolio management. By leveraging MSCI's award-winning analytical prowess and cross-asset modeling capabilities, the model offers institutional investors a coherent perspective that encompasses risks in both public and private markets. These insights are derived from MSCI's