Private Credit – Understanding the Risks & Opportunities in the Current Environment
Jeremy Todd, Prime Meridian’s Head of Capital Markets
During these times of uncertainty, investors may look into assessing and restructuring their portfolio to be able to withstand this current environment. For investment portfolios, private credit may provide a stable alternative compared with traditional equity and credit investments, and typically provide investors with portfolio risk diversification benefits.
At FLAIA’s virtual Real Estate, Direct Lending and Private Debt Forum, three panelists and I explored the opportunities and risks in private credit in this current environment. Private credit has been exponentially growing in recent years. By 2021, the industry is projected to rise to approximately $1 trillion in assets under management. Each of the panelists shared an optimistic outlook, including Prime Meridian. At Prime Meridian, we believe our funds are well positioned for all economic environments, including in today’s volatile markets.
Within the private credit asset class, the other panelists and I delved into different strategies that investors can take advantage of. At Prime Meridian, investors are not restricted to only one fund. We provide investors with the opportunity to invest in different verticals through our funds – consumer, real estate, litigation finance, life settlements, and specialty credit. By offering different funds within the private credit alternative asset class, investors have the option to invest in different strategies that best meet their investment objectives. We believe by being well-diversified and conservative, we are well positioned to take advantage of these opportunities and likely to generate higher quality risk-adjusted returns in this current environment.
Prime Meridian is one of the first dedicated fund managers in the marketplace lending space. Across our four main funds, we invest in various strategies: consumer lending, small business lending, real estate lending, life settlement, litigation finance, and specialty credit strategies.
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