Why investors should enter the private credit market

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Private Credit News

Private Loan,Alona Gornick,Investment Strategist

Churchill Asset Management senior investment strategist Alona Gornick joins Wealth! to give insight into what investors should think about when adding...

"I'd say any one of these investment areas is certainly unique and interesting. They all have very interesting dynamics happening, especially as the competitive landscape is changing," Gornick says."But if I were to go down and zero in on particularly direct lending, I would say that if you just understood it as something as simple as a private loan that's directly negotiated between a borrower and a source of capital, and that's it. It is so simple to understand.

And that's it, it is so simple to understand it's not complicated that borrower can be anything like a small middle market size, private business, steady profit margins, oftentimes owned by private equity firm. Because as I said earlier, it's really an essence alone between a borrow and a source of capital and that loan generates interest income and that's what an investor is going to receive, which is current income while being invested in the market.

 

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