Glossary
Private Debt
Private Debt refers to loans extended directly by private investors or specialised funds to companies, rather than through banks or public bond markets. Investors receive interest payments in return and bear the credit risk of the borrower.
At a glance
01
Private Debt includes strategies such as direct lending, mezzanine, and distressed debt.
02
The loans are generally not traded on public markets.
03
Interest is often variable, based on a reference rate.
Frequently asked questions
The primary risks are the credit risk of the borrower and restricted tradability. Investors commit their capital for the duration of the loan and cannot withdraw it at any time.
