As Senior Investment Strategist Alona Gornick shares, “The benefits of private credit shine brighter in uncertain times.” Read Alona’s Q&A with InvestmentNews below to learn why interest in the asset class is growing among retail investors and why we believe demystifying private credit is key to increasing adoption in the private wealth channel.
Interest in #privatecredit is booming. The market is expected to grow from $1.7 trillion to $2.8 trillion by 2028 according to Preqin, and retail investors will be a key driver of that expected growth. With double-digit yields, low default rates and low volatility, private credit offers retail investors a compelling opportunity to diversify their portfolios. To increase adoption among retail investors, we need two things – 1) more accessible products and 2) continuous education for #RIAs on the benefits and risks. The first is well underway. Managers are investing heavily in building accessible products for the #wealth channel with more accommodating fund structures that offer lower minimums and flexible liquidity features, avoid capital calls and issue 1099s. As fund opportunities for the private wealth channel grow, education for RIAs will be critical to properly empowering advisors to help their clients to capitalize on these new opportunities. Every day, my team at Churchill Asset Management has conversations with interested advisors where we discuss expected defaults and losses, the impact of competition on spreads and yields, key differentiators between private credit segments, liquidity flexibility and more. I’m grateful to play a small part in democratizing access to private credit. Many thanks to InvestmentNews for allowing me to share my insights on this exciting trend. Read more about this opportunity in my Q&A below. https://lnkd.in/gBd-_Uge
