High-net-worth individuals (HNWIs) and family offices are constantly looking to preserve and grow their wealth outside traditional investment options. This makes private credit, a form of lending to businesses by non-bank institutions, an increasingly relevant asset class to private wealth management as it offers a diversified investment option with potential for higher returns and risk-adjusted returns.
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What Is Private Credit
Private credit is, in essence, privately negotiated loans between a non-bank lender and a borrower, usually a business that might be unable to obtain loans from traditional banks. Private equity firms and alternative asset managers are typically the ones negotiating these loans.
Private credit allows borrowers to access capital with customised financing details they may not be able to...
