Glossary · alternatives
Private Debt
Also known as: private credit, direct lending
- Definition
- Private debt is non-bank lending to private companies, typically structured as senior secured, unitranche, or mezzanine credit. Returns 6–12% gross. Floating-rate exposure with secured collateral makes it a popular UHNW alternatives allocation.
Private debt has grown materially as an asset class globally since the 2008 financial crisis as banks retrenched from middle-market lending. Singapore family offices typically access via specialist managers (Adamantem, Helios, Crescent) or via UHNW PB alternatives platforms. Floating-rate exposure makes private debt a useful complement to fixed-income allocations in rising-rate environments.
Related
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