6 min watch
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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