Private Credit, Hot Wall Street Investment, Coming to Your Retirement
Business Insider • • general
Key Points:
- Private credit, a $3 trillion industry involving loans to companies funded by private investor money, has grown rapidly since the 2008 financial crisis, filling a lending gap left by traditional banks and attracting major finance firms like Blackstone and Apollo.
- This asset class is less regulated and more opaque than traditional public debt markets, with loan terms, pricing, and ratings often kept confidential, raising concerns about transparency and risk assessment for investors.
- The industry is now pushing to open private credit investments to retail investors through retirement accounts, potentially expanding from $80 billion to $2.4 trillion by 2030, despite legal and fiduciary challenges related to higher fees and potential lawsuits.
- Critics warn that the lack of transparency, potential overvaluation of loans
