Private Credit

Private Credit refers to companies obtaining loans outside the traditional banking system. These loans often have variable interest rates that are regularly adjusted to the current benchmark rate. Investors can therefore benefit from rising interest rates. Such loans are less sensitive to changes in interest rates than fixed-income securities. This can make them more stable in the face of rising inflation. The loans are often secured by income from long-term contracts. Losses of the capital invested are possible if companies or projects do not perform as expected. 

Examples:

• Financing a groundwater management provider offering services such as water purification or pump installations.
• Loans for industrial companies wishing to expand their capacity or develop new services.