Private Credit & Real Estate Debt
Being the lender instead of the depositor. Sound mid-sized companies pay 12–20% to borrow, secured. A private credit fund puts you on the lending side and collects that yield.
What it actually is
A Category II AIF (also via GIFT inbound) that lends directly to performing companies and real-estate projects — secured, covenant-protected loans banks are too slow or rigid to write. Interest comes back as regular payouts; principal returns as loans mature.
The job it does
- Double-digit income without equity volatility
- Regular quarterly/semi-annual cashflow
- Diversifying the debt book beyond FDs and bonds
Why people use it
- Contracted returns — repayment schedules, not market moods
- Security cover and covenants on each loan
- Low correlation with equity markets
What can go wrong
- Illiquid — capital is committed for the fund’s tenor
- Credit risk: defaults hit returns directly; underwriting is everything
- Fees and carry sit between the headline yield and you
Does Private Credit & Real Estate Debt belong in your architecture?
Seven questions narrow thirteen structures to a shortlist.
Long-Short SIFs
The Shock Absorber
GIFT IFSC / LRSGIFT City & Global USD
The Second Passport for Capital
Content on this site is for education only and is not investment advice or an offer to sell any product. Past performance does not guarantee future results. Please consult your Chartered Accountant and read all scheme documents before investing.