As rising rates and volatile markets continue to plague investors, returns are hard (but not impossible) to find. The search for yield has led investors to explore alternative investment strategies like private credit for higher yields, shorter durations, and low to no correlation to traditional equity and fixed income markets.
Once only available to institutional investors, the private credit market is a $7 trillion industry and one of the fastest-growing asset classes in private capital markets that is now witnessing a surge in investor demand. Private credit powers a great deal of the economy and has been a “go-to” source of funding for small business and consumer lending. What’s most notable is how it reached this size and scale without much technological advancement.
Percent Founder and CEO Nelson Chu and President Prath Reddy, CFA sat down with the Rocket Dollar team to explore the evolution of private markets and how largely uncorrelated investments like private credit are helping unlock yield and diversity for portfolios.