Citi’s Andy Sieg Endorses Private Credit Amid High Withdrawal Demand

Andy Sieg, head of Citi Wealth, told CNBC’s Halftime Report that Citi continues to recommend private credit to clients despite the fact that withdrawal requests at non‑traded private credit funds—business development companies (BDCs)—averaged 13.0% in the third quarter, well above the typical 5% quarterly cap. The funds hold multiyear loans but allow periodic withdrawals, so some investors cannot liquidate their entire position. Sieg argues that private credit and private equity are long‑term building blocks, with clients investing 10 to 30 years, and that the key test is the diligence of each manager. He noted that clients have been satisfied with the returns they have received. Meanwhile, many listed BDCs trade 10% to 20% below the reported value of their holdings, and IMF research flagged private credit as a potential amplifier of market stress if conditions tighten. Citi’s wealth revenue grew for the tenth straight quarter, with a 15% year‑over‑year increase in the third quarter and $38 billion in net new client assets, largely driven by deposit income rather than investment fees.