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Fortunes to be made as the private credit boom is going public

Fortunes to be made as the private credit boom is going public

Once a cottage industry, private credit is now attracting billions of dollars, reshaping the financial system and minting new fortunes.

It’s a winning trade that is being pitched around the world to investors of all sizes – from little old ladies to sovereign wealth funds.

The opportunity is earning double-digit returns by lending money to small businesses, big companies and real estate developers that have been left hanging by the banks. Lending money is reliable, stable and thanks to higher interest rates, is a compelling investment.

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Jonathan Shapiro
Jonathan ShapiroSenior reporterJonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com

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Original URL: https://www.afr.com/companies/financial-services/fortunes-to-be-made-as-the-private-credit-boom-is-going-public-20240603-p5jiyh