Why Private Credit

The Future of Fixed
Income is Private

Private credit is a multi-trillion-dollar asset class providing professional and institutional investors exposure to a range of private companies and sectors as well as delivering attractive risk-adjusted returns.

What is Private Credit?

Private credit refers to lending and debt investments made outside of traditional public markets and bank channels. Instead of borrowing from a bank or issuing bonds in the public market, businesses raise capital directly from private investors through structures such as direct lending, asset-backed finance, or private placements.

For investors, private credit offers access to differentiated yield, portfolio diversification, and risk-adjusted returns. For businesses, it provides flexible, non-dilutive capital to support growth, acquisitions, or refinancing - delivered with the efficiency and discretion of the private markets.

$1.7 Trillion

Private credit assets under management in 2024 (Preqin)

Source: Blackrock The Growth of Direct Lending

Benefits of Private Credit

Diversification with a History of High Returns

Private credit offers investors the potential for superior returns compared to cash or publicly listed bonds, while providing significantly greater security than equity investments.

Investors of private credit gain exposure to a range of asset classes including, but not limited to, real estate and infrastructure, litigation funding, and consumer debt purchase.

Additional Benefits

Attractive Risk-Adjusted Returns
Private credit offers higher yields than traditional bonds and a more stable risk profile than equities.
Enhanced Portfolio Diversification
As a non-correlated asset class, private credit can reduce overall portfolio volatility and provide a hedge against market downturns.
Higher Security and Collateralisation
Private credit is often secured by assets, offering greater downside protection than equity investments.
Stable Income Stream
With predictable interest payments, private credit offers a steady income source, making it an attractive option for income-focused investors.

Sectors

Financing the Real Economy

Private credit spans multiple sectors, offering investors diversified exposure and varied risk-return profiles, making it a cornerstone of institutional portfolios.

Real Estate & Infrastructure
Healthcare & Life Sciences
Technology & Digital Infrastructure
Financial Services & Non-Bank Financial Institutions
Energy & Renewables
Consumer & Industrial markets

Frequently Asked Questions

Private credit refers to lending outside of banks and public markets. Instead of raising debt through a bank loan or issuing a public bond, companies access capital directly from private investors via bespoke structures such as direct lending, asset-backed finance, or private placements.

Insights

What we're seeing, what we're thinking, and what we've been up to.

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