Private credit
Lending by nonbank investors, such as investment funds and insurers, negotiated directly with borrowers rather than sold in public bond markets.
What private credit is
Private credit is debt financing provided by lenders other than banks and negotiated privately with each borrower. It covers direct loans to mid-sized companies and asset-based finance, such as funding pools of buy now, pay later or small business loans. Investors usually hold the loans to maturity.
How it works
A fund manager raises money from institutions such as pension funds and insurers, then lends it under negotiated terms. In asset-based deals, the fund may buy loans from embedded lending programs as they are made, or finance them through a credit facility.
- 01 · RAISE A manager raises capital from pension funds, insurers and other institutions.
- 02 · LEND It lends directly to companies or buys and finances pools of loans.
- 03 · MONITOR It holds the loans, collects payments and tracks covenants until maturity.
When businesses use it
- Mid-sized companies financing growth, acquisitions or refinancing
- Fintech lenders funding loan growth through forward-flow sales or credit facilities
- Real estate owners seeking bridge or construction loans
- Insurers and pension funds lending beyond public bond markets
Cross River's Capital Solutions group sources private credit opportunities from fintech lending for institutional investors, offering vetted deals, co-investment and sector analytics. Securities offered through CRB Securities, LLC, Broker-Dealer, Member FINRA/SIPC. See credit investor solutions at Cross River.