A Wealth Shift in Motion
In the corridors of private banks and family office boardrooms, one phrase is gaining traction: private credit. Once the preserve of institutions and specialist funds, private credit has now emerged as the fastest-growing corner of the alternative investment universe.
High-net-worth (HNW) investors and ultra-high-net-worth (UHNW) families are re-evaluating traditional channels. Declining returns on public markets, volatility in equities, and compressed yields in fixed income have forced many to seek better risk-adjusted outcomes elsewhere. The answer, increasingly, lies in alternative lending strategies.
This article explores the forces driving the rise of private credit, the structural advantages it offers, and why sophisticated investors are allocating increasing proportions of their wealth into this sector.
Why HNW Investors Are Paying Attention
Yield Erosion in Traditional Assets
Despite higher nominal yields since 2022, bonds remain unattractive once adjusted for inflation, taxes, and risk. Many HNWIs are therefore targeting 8–12% annualised returns – a range that private credit strategies can realistically deliver.
Public Market Volatility
Equities are buffeted by geopolitics, rate policy, and tech-sector volatility. For wealth preservation, HNW investors prefer strategies offering predictable income and collateral backing.
Exclusivity and Access
Private credit deals are often invitation-only. For HNWIs, access itself is a differentiator, reinforcing status as well as portfolio strength.
Non-Correlation
Private credit returns show low correlation to listed equities and bonds. For HNW portfolios, this reduces volatility and smooths overall wealth performance.
The Pain Points of the Wealthy – and How Private Credit Addresses Them
Inflation Eating into Cash
Cash and traditional bonds cannot preserve wealth against persistent inflation. Private credit provides inflation-beating yields.
Limited Differentiation in Conventional Portfolios
Most private banks offer similar model portfolios. Private credit offers a bespoke advantage – access to transactions unavailable to mass-market clients.
Capital Trapped in Illiquid Structures
Traditional private equity locks capital for 10+ years. Private credit, via evergreen funds and structured notes, allows more frequent liquidity options.
Need for Legacy and Control
UHNWIs value not just wealth preservation but legacy. By financing real economy businesses directly, private credit aligns their investments with visible impact.
The Global Growth of Private Credit
Private credit is no longer fringe:
- From $1 trillion in 2020, the sector has surged to $1.5 trillion by 2024, and is projected to exceed $3.5 trillion by 2028 [1].
- In Europe, private credit now accounts for 70% of mid-market corporate lending [2].
- Evergreen and interval funds attracted €24 billion of inflows in 2024 alone [3].
- In H1 2025, affluent investors contributed $48 billion into private credit, already surpassing the prior full-year total [4].
This growth is underpinned by a retreating banking system, institutional appetite, and the increasing participation of wealthy individuals.
Segments of Private Credit Attractive to HNWIs
Direct Lending
The flagship category. Lending to mid-sized corporates offers 8-10% yields, strong covenants, and collateral backing.
NAV Lending
Gaining traction amongst sophisticated allocators. By lending against portfolios of private equity funds, investors access asset-backed liquidity with comparatively low risk.
Venture Debt
Late-stage growth companies seek non-dilutive capital. Venture debt offers equity-like upside with debt-style downside protection.
Real Asset-Backed Credit
From renewable energy projects to logistics warehousing, private credit supports tangible assets. For HNWIs, this combines income, inflation protection, and ESG alignment.
Risks in Private Credit – What Millionaires Must Know
While attractive, private credit is not without risks. UHNW investors must approach with discipline and due diligence.
- Liquidity risk: Many vehicles are semi-liquid at best.
- Manager dispersion: The gap between top and bottom-quartile managers is wide [5].
- Credit risk: Defaults can rise in high-rate environments.
- Complexity: NAV loans, distressed strategies, or speciality finance require expert understanding.
For wealthy investors, the solution lies in trusted partners who curate, filter, and manage exposure – ensuring risks are matched to profile.
Case Studies: Private Credit in Action
Financing AI Infrastructure
A global AI data centre operator required $500 million. Traditional banks financed only part. UHNW investors, via private credit funds, provided the balance – earning double-digit yields with asset-backed security.
Renewable Energy in Asia
A Vietnamese wind developer raised $120 million from family offices and private credit syndicates after local banks pulled out. Investors gained high returns with ESG alignment.
Venture Debt in Europe
A fintech scale-up secured €80 million in venture debt, avoiding dilution. UHNW investors accessed the deal through a curated syndicate.
How Jura Capital Supports HNW Investors
At Jura Capital, we recognise that HNW investors are not just seeking returns. They seek:
- Access: To exclusive, institutional-quality transactions.
- Transparency: Clear visibility on risks, structures, and expected outcomes.
- Alignment: Strategies that respect both wealth preservation and long-term growth.
We position ourselves at the intersection of capital seekers and allocators, helping HNW investors deploy into private credit with confidence, curation, and discretion.
The Role of Artificial Intelligence in Private Credit
Artificial intelligence is no longer confined to the realms of equity research or trading – it is now shaping private credit as well. For HNW investors, this matters because technology is transforming both the quality of opportunities and the security of capital deployed.
AI-Enhanced Underwriting
Credit assessment is moving beyond static financial models. AI-driven analytics allow managers to evaluate borrower performance in real time, accounting for supply chain data, macroeconomic indicators, and even sentiment analysis.
Data-Driven Monitoring
AI tools track ongoing borrower health, flagging risks long before they materialise. For investors, this means fewer surprises, stronger covenants, and more reliable cash flows.
Borrower Demand from the AI Sector
The AI sector itself is capital-hungry. From semiconductors to data centres, AI-linked businesses require billions in financing. Private credit funds are increasingly the natural providers of this capital, supported by UHNW allocations.
For investors seeking both innovation and resilience, AI in private credit represents a strategic edge.
FAQs on Private Credit for Wealthy Investors
Why should I consider private credit now?
You should consider private credit now because the backdrop has shifted in its favour. Traditional fixed income, even after the rate hikes of 2022–23, is still offering only 3–5% in most developed markets. Once you account for inflation, tax, and reinvestment risk, the real return is slim. Meanwhile, banks have pulled back from many types of corporate lending due to tighter regulation. That funding gap has created strong demand for alternative capital – and private credit managers are stepping in. For investors, this translates into opportunities to earn 8–12% annualised returns, often with security packages such as asset-backing or covenants, and without the day-to-day volatility of listed equities.
How liquid are private credit investments?
Private credit investments are generally illiquid compared to traditional public markets. Unlike listed equities or bonds, they can’t simply be traded on an exchange, meaning your capital is usually tied up for the duration of the loan or fund term. Direct lending or loan note structures often run for two to five years, with interest paid regularly but the principal only returned at maturity. Private credit funds may lock investors in for five to seven years, sometimes offering limited redemption windows after an initial period, though secondary markets exist for those needing an exit, albeit with less efficiency and pricing certainty. The key trade-off is that while investors sacrifice day-to-day liquidity, they gain access to higher yields, contractual cash flows, and diversification benefits that make private credit a compelling option for those with medium- to long-term horizons.
What role should private credit play in my portfolio?
Mariana Paul from UBS O’Connor argues that the conventional 60% equities and 40% bonds split is increasingly outdated, especially under current high-inflation conditions. She suggests that investors reconsider their allocations and move toward holding at least 40% in alternatives, such as private equity and private credit, which can offer attractive yield potential and downside resilience – particularly when traditional bonds might underdeliver.
How does Jura Capital add value?
At Jura, we add value by bridging the gap between investors seeking meaningful returns and the often hard-to-access world of alternative assets. We provide curated access to specialist opportunities in private credit, private equity, and niche alternatives that most HNWIs and family offices cannot easily reach on their own. Every opportunity is carefully filtered through an institutional-level due diligence process, ensuring that only credible, structured, and high-quality investments are introduced. In today’s environment, where traditional bonds struggle to deliver real returns after inflation and taxation, Jura focuses on strategies designed to provide attractive yields while offering asset-backing, covenants, or specialist structures to balance risk. Beyond yield, we help investors diversify away from the outdated 60/40 model, introducing return streams that are not closely correlated with public markets. Unlike mass-market platforms, Jura operates as a boutique introducer, offering a personal, relationship-driven approach that adapts to each client’s goals, liquidity needs, and risk appetite. Above all, we prioritise education and transparency, giving investors not just access to opportunities but also the knowledge and context they need to make confident, informed decisions.
The Rise of a New Wealth Paradigm
Private credit is no longer a niche – it is a pillar of global finance. For HNW investors, it offers yield, exclusivity, and diversification unmatched by traditional markets.
Yes, risks exist. But with careful structuring, disciplined management, and trusted intermediaries, private credit can play a transformative role in preserving and enhancing wealth in 2025 and beyond. At Jura Capital, we remain committed to guiding wealthy individuals and families through this journey – ensuring their capital is not only preserved, but deployed intelligently, securely, and with foresight.
References
- Private Credit Outlook 2025: Opportunity & Growth, Morgan Stanley.
https://www.morganstanley.com/ideas/private-credit-outlook-considerations - Global banks pull back on lending amid regulatory pressure, Financial Times.
https://www.ft.com/content/0b3cd961-f748-4c0b-8298-e9329820e244 - Evergreen Funds Surge in Europe, Financial Times.
https://www.ft.com/content/0b3cd961-f748-4c0b-8298-e9329820e244 - Affluent Investors Pour $48B into Private Credit, Financial Times.
https://www.ft.com/content/0b3cd961-f748-4c0b-8298-e9329820e244 - “Investors should look beyond the traditional 60/40 equity-bond split to the growth and diversification opportunities offered by alternative investments”, The Australian.
https://www.theaustralian.com.au/business/markets/asset-allocations-need-a-rethink-says-ubss-mariana-paul/news-story/6f0cf56b4947a45029a87a6318ad7674