Intro:
Private credit has grown into one of the fastest-expanding areas of alternative investments. With traditional fixed income under pressure, institutional investors and high-net-worth individuals are turning to private lending strategies for attractive yield and diversification.
Body Highlights:
- What is private credit? → Non-bank lending solutions, typically targeting SMEs and middle-market companies, structured as senior, mezzanine, or unitranche debt.
- Why it matters now → Persistent inflation, higher interest rates, and tighter bank lending standards are creating opportunities for private lenders.
- Targeted returns → Many private credit funds aim for 8–12% annualized net returns, with risk profiles lower than private equity but higher than public bonds.
- Risks to consider → Liquidity constraints, default risk, and sector concentration must be actively managed.
“Unlocking yield and diversification as private markets redefine the future of fixed income.”
Closing line:
At Parezzi Capital, we believe private credit will continue to be a cornerstone for investors seeking yield with downside protection.
