After a decade-long uptick, private debt funds are expected to deliver the worst short-term performance since the global financial crisis, when returns were as low as -30%, according to data provider PitchBook.

Public private equity firms, such as KKR and Ares Management, have marked down their credit portfolios – ranging from 8.1% to 21% – in the first quarter, which is an early indicator of the grim scenario ahead, PitchBook said in its latest Global Private Debt report.