Private credit AIFs offer a strategy that acts as a powerful counterbalance to traditional equity investments. These funds provide customized loans and financing directly to mid-sized companies, bypassing public bond markets and traditional banks.
The return stream is primarily in the form of regular **interest payments**, making it a yield-focused asset class. Private credit is secured by the company’s assets and offers higher yields than public debt, compensating the investor for the illiquidity, and providing stable returns often less correlated with stock market volatility.
