Commentary

First Brands collapse clouds efforts to democratise private assets

Credit funds have taken a hit since the US supplier of car parts went bust owing billions

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First Brands Group’s bankruptcy filing caps weeks of turmoil sparked by creditor concerns over the auto supplier’s use of opaque off-balance-sheet financing Photo: George Frey/Bloomberg/Getty Images

So much for the old adage ‘sell in May and go away’. Share prices climbed steadily through the summer and into the autumn, leaving the main indices in the US and UK up around 15% for the year-to-date.

Yet one group of stocks has been left behind. Shares of funds holding private assets have generally lagged, in some cases by wide margins.

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