Introduction

The shift toward open architecture in wealth management is no longer a trend — it’s an expectation. Independent wealth managers, family offices, and boutique advisory firms are moving beyond the limitations of traditional product shelves to offer clients broader, more tailored exposure to real assets, private markets, and niche credit strategies.

But with this flexibility comes responsibility: how do you filter signal from noise in a market crowded with alternative investments, many of which are poorly structured, opaque, or illiquid?

Enter structured credit — and more specifically, direct private credit opportunities that exist beyond the radar of typical fund selectors. Among these, distressed student loan refinancing in the US is emerging as a differentiated strategy offering real yield, risk control, and a socially meaningful narrative.

Structured Credit: A Toolkit for Today’s Market

Structured credit broadly refers to investments that repackage pools of debt into securities with different risk-return profiles. But away from the synthetic complexity of 2008-era instruments, today’s market is seeing the rise of transparent, asset-backed strategies tailored to solve real problems — for borrowers and investors alike.

Types of structured credit now gaining attention from wealth managers include:

  • Private credit-linked notes with underlying loans to businesses or individuals
  • Asset-backed lending secured against real estate, vehicles, or receivables
  • Special situations credit, including litigation finance or tax receivables
  • Student loan refinancing, particularly in distressed or non-bank segments

These strategies offer something the public bond market increasingly does not: return. Yields of 8–13% net IRR are not uncommon, especially when paired with strong collateral or legal protections. In a market still digesting inflation and interest rate volatility, structured credit has become a vital tool for client portfolios.

Spotlight on a Strategy: Refinancing Distressed Student Loans

The US student loan market exceeds $1.6 trillion, with a significant portion comprising private loans — those issued by non-government lenders. Unlike federal loans, private loans can’t be forgiven or deferred as easily, and borrowers in distress often find few options.

Some US managers have identified this inefficiency and built structured strategies to acquire and refinance these loans — often in default or severe delinquency — at steep discounts. Loans are then restructured into new, affordable repayment plans, usually over 10 years with rates around 5–6%.

Here’s how the structure works:

  • Acquisition: Loans are bought in bulk from servicers or portfolios at deep discounts (e.g. 10-40 cents on the dollar).
  • Underwriting: Loans are re-underwritten with strict criteria — credit score, employment status, and often co-signer support.
  • Restructuring: Borrowers are offered new terms they can afford. Once they complete 12 months of clean payments (“seasoning”), these loans become attractive to secondary buyers (sold at 70-90 cents on the dollar) or can be held to maturity.
  • Investor Benefit: The structure offers monthly income and a high probability of capital preservation, with default mitigation built in.

In short, it’s a cashflow-producing credit product with a social utility — helping borrowers out of distress while delivering yield to investors.

Why Wealth Managers Are Paying Attention

For many high-net-worth clients, the traditional 60/40 model no longer delivers. Bonds have lost their punch, equities remain volatile, and many clients are hungry for stable income that doesn’t correlate with public markets.

Structured credit strategies — particularly those offering monthly cashflows, short duration, and defined downside risk — are ticking a lot of boxes.

Benefits for the end investor include:

  • Attractive target returns: Often 8–13% IRR, depending on structure and duration
  • Inflation protection: Real assets or floating rates offer a hedge
  • Diversification: Exposure to consumer credit or niche lending segments
  • Impact: Particularly in the student loan space, there's a real-world benefit
  • Customisation: Many products are delivered via feeder structures or listed notes

For the adviser, they offer an opportunity to demonstrate independence, product leadership, and due diligence capability — all critical differentiators in a world of rising client expectations.

Risks and Considerations

Like any investment, structured credit is not without risk. These strategies often carry:

  • Illiquidity: Some structures may have 12–36 month durations with limited early exit
  • Counterparty risk: It's crucial to assess the manager, servicer, and underlying collateral
  • Default and delinquency rates: Even restructured loans can re-default, so seasoning and ongoing monitoring are key

But for advisers with strong selection frameworks — and the ability to partner with experienced intermediaries — these risks are manageable and well-compensated.

Are You Really Working with an Independent Wealth Manager?

Clients are often told their adviser is "independent" — but it’s worth asking what that really means. Are they truly selecting from the whole market, or only from products available on a single platform? Are they incentivised to recommend certain funds, or free to explore opportunities beyond the usual suspects? A genuinely independent wealth manager doesn't just talk about open architecture — they use it. That means looking beyond UCITS funds and model portfolios to find differentiated, risk-conscious opportunities that align with client goals. Structured credit, by its nature, requires such independence — it doesn’t slot neatly into legacy systems or kickback schemes. If your adviser isn’t showing you opportunities like this, it’s fair to ask: are they truly independent, or just saying they are?

Conclusion: We Bring the Private Market Within Reach

Structured credit is no longer the preserve of institutions — but it’s not on the shelf either. These are private deals, with private access, and real diligence requirements. Most wealth managers know their clients want these assets. Fewer know where to start. And fewer still have the relationships, governance, and legal infrastructure to act on them.

That’s where Kingsbury & Partners changes the game.
We source, structure, and distribute private credit opportunities that advisers can actually use — without the opacity, complexity, or product push. Whether it’s refinancing distressed student loans in the US or building bespoke credit-linked notes for client portfolios, we help professional investors access yield on their terms, not someone else’s.

We’re not a product house. We’re a platform for wealth managers who want to deliver differentiated, risk-conscious value to their clients and defend their independence.

If you're building modern portfolios and feel like you're still locked out of the private market — it's time to work with someone who opens the door.