Private Credit: An Attractive Alternative Strategy
Private credit may be an attractive alternative strategy with strong historical risk-adjusted returns, high income potential and more structural benefits.
DIRECT LENDING IS EXPANDING RAPIDLY
Private credit is non-publicly traded debt, directly negotiated with non-bank entities (e.g., direct lenders) to fund private businesses. Direct lending, the leveraged loan segment of the private credit market, is the fastest-growing component and offers an attractive risk-return profile with strong debt structure.
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Private Credit: Three Middle Market Advantages
Private credit may offer higher yields, better structure and terms, and expanded opportunities vs. traditional fixed income assets.
Risks—Investing involves risks. Some investments are riskier than others. The investment return and principal value will fluctuate, and shares, when sold, may be worth more or less than the original cost. Alternative Investments are not subject to the same regulatory requirements or governmental oversight as mutual funds. The sponsor or manager of any Alternative Investment may not be registered with any governmental agency. Investors are also urged to take appropriate advice regarding any applicable legal requirements and any applicable taxation and exchange control regulations in the country of their citizenship, residence or domicile which may be relevant to the subscription, purchase, holding, exchange, redemption or disposal of any Alternative Investment. Alternative investments often engage in leverage and other investment practices that are extremely speculative and involve a high degree of risk. Such practices may increase the volatility of performance and the risk of investment loss, including the loss of the entire amount that is invested. Private investments are subject to liquidity risk which constitute illiquid investments for which there is not, and will likely not be, a secondary market at any time prior to a public offering and listing of our shares on a national securities exchange.
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