The SWIB Podcast: A Look at How SWIB Approaches Investing in Private Credit with a Long-Term Perspective

Private markets have become an increasingly important part of how large institutional investors build diversified portfolios—but they’re also an area that can feel complex and, at times, misunderstood.

At their core, private markets include investments that aren’t traded on public exchanges — meaning they’re less liquid and have historically offered investors additional return potential in exchange for that trade-off. Within this space, two key areas stand out: private equity, which involves investing in the ownership of private companies, and private credit, which focuses on lending to those companies.

Private credit now plays a critical role in financing businesses of all sizes, offering flexible, customized solutions that often aren’t available in public markets. But with that growth has come increased scrutiny. Recent headlines have raised concerns about credit quality, liquidity, and how these investments might perform if economic conditions weaken. So, what’s really happening beneath the surface—and how should long-term investors think about the risks and opportunities?

For the Wisconsin Retirement System (WRS), private credit is one part of a broader, diversified Core Fund. In this episode, we’ll break down how private credit works, why companies choose it, and how SWIB approaches investing in this space with a long-term perspective with senior portfolio managers Beth Holzberger and Lin Maung. They will help unpack the evolution of private credit, address some of the concerns making headlines, and explain how these investments contribute to the strength of the WRS Core Fund.

Click here to listen to this episode and all past episodes of The SWIB Podcast.