Private Credit

Debt financing provided by non-bank lenders to privately held companies or projects

What is private credit?

Private credit is an alternative investment opportunity that offers higher yields and attractive risk-adjusted returns compared to traditional fixed-income investments. Private credit investments provide funding to non-public companies that are not able to access traditional bank financing, offering a unique opportunity to invest in a diversified portfolio of credit instruments such as loans, bonds, property, and structured products. By investing in private credit, you can support small and medium-sized businesses while generating attractive returns on your investment.

Common Terms & Definitions

• Pari Passu: in the realm of finance and investing, "Pari Passu" refers to the equal treatment of groups of creditors or investors in terms of their claims or rights to assets or cash flows. This means that all investors or creditors with the same legal priority or ranking will be treated equally in the distribution of assets or cash flows, without any preference or discrimination.
  • Example: in a bankruptcy proceeding, creditors who have the same legal priority or ranking will be treated pari passu, meaning that they will receive the same proportion of the assets available for distribution. Similarly, in a bond issuance, investors who hold bonds with the same seniority or priority will have pari passu rights to the underlying collateral or cash flows, and will be entitled to the same treatment in case of default or bankruptcy.
• GSA: "General Security Agreement" is a legal document used to secure a loan or other financial obligation by granting a security interest in the assets of a borrower. This means that the lender has the right to take position of, sell or dispose of any of the borrower's assets that are subject to the security interest, in the event of a default or non-payment of the loan.

Product features

• Variety of Investment Options to meet your specific investment goals and risk tolerance. Examples of debt financing includes: Senior Direct Lending, Mezzanine Financing and Distressed Debt.
• Interest Payments are paid during the term of the loan alongside paying the full sum of the loan in the future. products, allowing you to access global opportunities without changing currencies.
• Potential for Higher Returns than traditional fixed-income investments.
• Capital Appreciation Opportunities can occur in the event of your support in the growth of a promising business or project.

Risks(including but not limited to)

• Private Credit investments can be less liquid than publicly traded bonds.
• The credit risk of the entities that you are lending to must be considered. There is a higher risk of default when compared to traditional debt investments, which can result in a loss of principal and interest.
• The performance of Private Credit investments can be affected by changes in the market conditions which include factors like interest rates, economic conditions etc.
• The success of Private Credit investments often depends on the experience and skill of the fund manager. If the manager is inexperienced or poor investment decisions are made, it can lead to underperformance and lower returns.

Key Features

Our previous private credit transactions

How do I get qualified as a Wholesale Investors?

We assist Wholesale Investors in gaining access to Structured Investments that were only available to large institutions like banks and their private clients.

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