Private credit is a big tent that offers investors various options for preserving capital, generating yield, and benefiting from capital appreciation. It may offer investors a broader opportunity set than public credit, and greater potential for active manager alpha through skilled allocations to less efficient markets. When building private credit portfolios, investors must carefully balance their risk tolerance with their return objectives. Arriving at an optimal allocation requires consideration of the context of the entire portfolio’s allocation to broader alternative and traditional long-only assets. Investors will likely be well-served by working with a skilled advisor to properly navigate and understand the different corners of the private credit market and how each of these areas might play a role in achieving the investor’s portfolio objectives. For institutions considering a private credit allocation, this white paper aims to provide an in-depth look at the role the asset class might play, and what investors might expect in terms of behavior.