Private credit offers investors opportunities to lend to private companies instead of purchasing stocks. It poses significant risks, especially for ordinary investors, particularly those considering their retirement savings. Major firms like Apollo and BlackRock are expanding into private credit, aiming at the massive $12 trillion U.S. retirement market. Though attracting interest, private credit is generally accessible only to the wealthy due to high minimum investment requirements and associated fees. As many bigger companies stay private longer, there's increasing pressure to provide retail investors access to private investment opportunities.
Private credit allows investors to lend money to private companies rather than buying stock, offering high risk and high reward, often independent of the stock market.
Retirement service providers are increasingly entering the private credit market, with major players like Apollo and BlackRock targeting the extensive over $12 trillion in U.S. retirement plans.
Private credit has higher minimum requirements and is less regulated, often leading to greater fees, with advisors warning that it is primarily suitable for affluent investors.
With 87% of U.S. companies with over $100 million in revenue being privately owned, there is a growing argument for retail investors to access private investment opportunities.
Collection
[
|
...
]