When a company needs a big loan to buy a competitor or fund a major project, they traditionally go to big banks or sell bonds on the public market. Private credit funds changed this process, allowing for more streamlined borrowing. Private credit funds act as the bank, lending money directly to companies in bespoke deals.
Gaining Altitude: Alternatives Fly Above the Radar
It would appear that the alternative investment industry has the complete focus of the SEC, and it is not hard to see why. Attracted by the high return potential and uncorrelated nature of many alternatives, sophisticated investors from significant pension plans, sovereign wealth funds, family offices and high-net-worth individuals have significantly increased allocations to the asset class over the last few decades.