489: Private Credit Is Growing In Popularity For The Cash yield And Lower Risk

The Private Credit asset class is growing rapidly because investors love the cash yield and the lower risk profile than many equity investments. With first lien lending, you’re first in line to take over a borrower’s asset if they don’t perform. The $5 million to $10 million lower-middle market arena, in particular, is an underserved market because it’s too large for most ma and pa lenders and too small for larger lenders. Beau Hale, Founder and Managing Partner of Pine Peak Partners, lends to borrowers in the lower to middle market space as a GP and raises capital from investors. Beau generates returns for his investors in excess of 10%.