Education
Private Credit Series Part 1
The 'middle-market effect' is a premium of returns above smaller- and larger-sized investments that is persistent and accessible with select investment strategies and managers. Part of the reason for this is supply and demand, preferences of large investors, combined with growth opportunity that provides higher returns than the smallest- and largest-scale investments.
Private Equity is the term used for investing in companies that are not publicly listed. Private Equity fund managers raise capital to buy into private companies, which they then manage and overhaul to earn a profit once the business is sold again years later.
Alternative investments are asset classes that aren’t stocks, bonds or cash. They are most often also referred to as private market or unlisted assets although some may be derived from listed markets.
Over the past decade, private credit experienced a number of tailwinds that boosted the demand for the asset class from both institutional and private investors. Today, the private credit market is estimated to stand at over USD $1.5 trillion. In this article we discuss what private credit characteristics are and the benefits of adding an allocation to your investment portfolio.
Our Managing Director Mathew Cassidy joined James Kirby, Wealth Editor at The Australian for an episode of The Money Puzzle to explain what unlisted assets are, balancing risk and return, and how Partners Private are opening the doors to unlisted investment opportunities that clients would not be able to access on their own.