MSCI Unveils Private Credit Factor Model to Boost Transparency in Growing Asset Class 

MSCI Inc. has launched a private credit factor model designed to help investors address the asset class’s persistent lack of transparency and better evaluate its long-term risks within multi-asset portfolios. Accessible through MSCI’s Analytics platform, the model enables risk teams to decompose risk across private credit strategies—from corporate lending to asset-backed debt—while also assessing sensitivity to macroeconomic shocks, modeling exposures despite limited data, and integrating private credit into total portfolio risk reporting. 

“By bringing transparency and consistency to private credit risk, MSCI’s model supports smarter decision-making and enables investors to better understand how these assets contribute to overall portfolio risk and resilience,” said Luke Flemmer, head of private assets at MSCI. 

The tool builds on MSCI’s expanding suite of private credit analytics, complementing the MSCI | Moody’s Private Credit Risk Assessment, which focuses on default and loss probabilities. Together, these solutions provide investors with insights into private credit’s volatility, correlations, and contribution to risk budgeting and strategic allocation decisions. 

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