Options such as Private Equity and Private Credit have only be available to institutions and high net worth accredited investors and not been offered to investors like myself... until recently. The lure of Private Equity and Private Credit as always been higher returns, which are sometimes significantly higher, than available in traditional investments and bonds. The tradeoffs are a minimum investment amount and a lockup period. Now, registered investment advisor (RIA) firms are offering small "slices" to their clients at lower minimum investment amounts.
I have been offered both through my brokerage accounts. For due diligence, I asked for the prospectuses. They were an inch thick and up to 800 pages. The prospectuses described the multiple investments in each offering and the expected returns. It described the lockup period, periodic withdrawals/distributions and if future contribution were expected. A significant part of the prospectus was focused on risks of loss.
Overall, I decided the additional returns was not worth the loss of flexibility to access funds and the additional risk. I've decided to pass on Private Equity and Private Credit at this time.
This is not financial nor investment advice. Please consult a professional advisor.
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