Private assets. Whether that be equity or credit, the private sector has quickly become the hottest trend in investing. Institutional investors and high-net-worth individuals have gobbled up loans, invested in private equity funds, and snatched up non-public real estate assets at a fevered pace. The non-correlated returns and high yields have been the main draw. But these private assets seem so far out of reach for the rest of us.
However, there is potentially a backdoor to private credit and equity. One that looks like a screaming buy in the current market environment.
Today, business development companies (BDCs) offer strong yields, private market access, and the potential to make the most of the Fed’s soft-landing/rate cuts. For investors, the often ignored BDC sector could be just what their portfolio is looking for.
