• Understanding Private Credit

  • Jul 21 2024
  • Length: 7 mins
  • Podcast

Understanding Private Credit

Listen for free

View show details

  • Summary

  • Private Credit is a favored asset class among ultra high net worth investors. Due to its much higher return and reduced risk profile, we believe it should replace a large percentage of bond allocations in investor portfolios. This episode covers a few of the basics to set the foundation for later podcasts that will go deeper into the weeds on Private Credit investing.


    Private credit has existed since the early 2000s but is relatively new to many investors. The concept involves making large-scale loans to companies that can't obtain credit from traditional banks. This need emerged post-financial crisis when banks faced stricter regulations. Private credit offers benefits like high monthly returns with lower risk compared to bonds or stocks. The script explains vital terms such as capital structure, preferred equity, mezzanine debt, senior secured debt, call protection, and covenants, illustrating their roles in making private credit a safer investment.


    00:00 Introduction to Private Credit

    00:18 The Rise of Private Credit Post-Financial Crisis

    01:41 Understanding Capital Structure

    03:24 Key Terms in Private Credit

    06:01 Conclusion and Final Thoughts



    Hosted on Acast. See acast.com/privacy for more information.
    Show more Show less
Show more Show less
activate_Holiday_promo_in_buybox_DT_T2

What listeners say about Understanding Private Credit

Average customer ratings

Reviews - Please select the tabs below to change the source of reviews.

Audible.com reviews

Amazon reviews
No Reviews are Available