Private Credit Is Coming to 401(k) Plans. These Are the Alternative Asset Managers Set to Cash In.
The private credit sector is growing rapidly, and it could get a huge boost when the average investor can buy in, too.
Overview
Private credit sounds fancy, but it really isn't. Essentially, private credit businesses invest in the equity and debt of non-traded businesses. It's roughly similar to what happens in the public stock and bond markets, just without the liquidity that public markets offer. That said, there are material risks for investors to consider before making a private credit investment.
That's going to be increasingly important because private credit investments are likely heading to a 401(k) near you. Here's what to think about before investing in private credit, and a way to profit from the increased availability that doesn't require you to buy a private credit fund. (Hint: Blackstone (NYSE: BX), Apollo Global Management (NYSE: APO), and KKR (NYSE: KKR) all manage private equity investments.)
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
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