Private credit funds that take money from retail investors could face outflows in the months ahead, as sentiment towards the credit markets turns increasingly bearish, according to the president of direct lending stalwart Golub Capital.

The emergence of “semi-liquid” direct lending funds — as firms like Blue Owl and Blackstone seek to bring private debt to a bigger audience — may cause “drama” as credit conditions tighten, said David Golub in a keynote discussion at the SuperReturnUS conference on 13 September.