Private Credit Turmoil Has Retail Investors Eyeing the Exits
As the once-niche asset faces headwinds, a wave of fund withdrawals has only raised anxieties
Illustration: Peter Oumanski for Bloomberg Markets
George Hines, the founder of a chain of music stores, invested in private credit funds for the juicy yields.
These funds pay out much more income than a plain-vanilla bond investment—often about 9% a year. The catch is that they hold privately arranged loans that could be hard to sell in a hurry, so investors have to accept limits on when they can redeem them and for how much.