What is Private Credit and What Role Can it Play in Portfolios?

6 min watch

Key Takeaways

  • Keri Findley, founder and CIO of Tacora Capital and former partner of ThirdPoint, explains the basics of private credit.

  • Private credit is any deal done by two people - ranging from safer asset backed loans (like mortgages) to distressed credit.

  • Private credit provides a service to the economy/smaller business owners by doing the deals big banks often overlook, at rates better optimized for the actual business risk.

  • In a portfolio, private credit is a higher-yielding, bond-like alternative which can provide some additional upside exposure (depending on warrants). There are different levels of risk (and return) that investors can take on depending on strategy.


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