Private Credit Sells Funds for Small Investors as Big Ones Balk
- Interval funds grow popular as direct lenders seek retail cash
- Firms see investment advisers as key to diversifying funding
Private credit funds are finding it harder to raise capital from the largest investors as still-high interest rates weigh on financial assets.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Private credit firms are looking to get their share of an estimated $178 trillion personal wealth market by offering individual investors what looks almost like a mutual fund.
The product, called an interval fund, is being pitched to registered investment advisers as an easy-to-sell entry into direct lending. Interval funds are being offered in amounts as low as $1,000 and can be purchased online through brokerage accounts, unlike larger investments that require multi-page subscription agreements.