Private credit has been receiving a lot of attention lately due to the higher interest rate environment. In my first seven years of investing, my focus was primarily on growth. However, as I transitioned into working as a professional analyst, I gained a broader perspective on portfolio management and the importance of meeting client needs through various asset classes and investment vehicles.
Over the past year, I have dedicated significant time to learning about and implementing private credit strategies. As I became more familiar with this asset class, I started to appreciate its role in creating a well-balanced portfolio. I believe that private credit should have a presence in a diversified portfolio. Despite growth of the asset class, many retail investors still overlook private credit.
This past weekend, I read Ares Investment’s comprehensive guide to private credit and thought it would be beneficial to create a post reviewing the concept and discussing some strategic approaches. In this blog, I will explain what private credit is, how it has evolved, and why I am enthusiastic about this asset class.reviewing Private Credit and discussing some strategy concepts. In this blog, I walk through what Private Credit is, how it has changed, and why I like the asset class.