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Four things investors must know before leaping into private credit

Private credit is a newly accessible asset class for retail investors, but there are potential traps for the unwary as not all private credit is the same.

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Private credit is attracting considerable attention for good reason. Once purely the domain of large institutional investors such as Australia’s Future Fund and the large superannuation funds, this defensive asset class is undergoing a revolution in access for investors, which brings opportunities and risk.

Not too long ago even high-net-worth Australian investors could not easily allocate capital to global private credit because gaining access to the best global managers has been exceedingly difficult.

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Nehemiah Richardson is CEO of Pengana Credit.

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    Original URL: https://www.afr.com/wealth/investing/four-things-investors-must-know-before-leaping-into-private-credit-20241023-p5kkj0