Private markets investing in distressed debt is gaining traction as credit spreads widen. Hedge funds and special situations managers are positioning for opportunistic acquisitions, anticipating default rates to peak in late 2024, offering potential double-digit yield entry points. The variation in returns from PE trusts is a demonstration that investment strategy and process are highly important. The partnership will expand “access beyond the commercial real estate asset class, and will accelerate our vision of self-directed private market investing into a reality,” Crowd Street CEO John Imbriglia said. Private markets investing strategies are evolving to include more co-investment structures, allowing LPs to enhance net returns. Data shows co-investment deals deliver 200-300 basis points higher IRR compared to blind pool commitments, particularly in technology and renewable sectors.