Private debt returns 1.88% in Q2, lagging private markets

Private debt returned 1.88% in the second quarter of 2026, below the 4.37% the State Street Private Capital Index recorded for wider private markets, according to the index data reported by Alternative Credit Investor.

Private debt also trailed buyout and venture capital in the quarter, which returned 2.99% and 10.06% respectively. Over 12 months the gap is wider: private debt returned 7.07% against 11.8% for the index, which venture capital led at 30.38% on valuation growth in late-stage technology and artificial intelligence-related investments.

For an allocator weighing the next quarterly commitment, the benchmark matters more than the ranking: an insurer or pension that funds private debt from a fixed-income allocation is measuring 7.07% against what a bond portfolio would return, not against venture capital's 30.38%.

Sector returns diverged. Information technology funds returned 6.41%, their strongest quarter since the final three months of 2021, energy funds 5.80% and consumer funds 0.8%. US-focused funds returned 5.03% against 4.17% for the rest of the world, and European funds 1.24%, up from 1.15% in the first quarter.

State Street's index readings reach allocators alongside its valuation business. As Private Wealth Daily previously reported, the custodian added daily NAV pricing for Apollo's $850 billion credit arm, replacing monthly valuations with daily marks.