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Private Credit
What is a private credit investment?
Private credit is a form of lending where non-bank financial institutions provide debt capital directly to privately held companies, instead of banks as the primary source of debt financing.
Why private credit?
In recent years, we believe that private credit has become a mainstay of private markets portfolios. Just as the potential benefits to borrowers and lenders are numerous, we think the strategy is appealing to investors for many reasons. In a downside scenario, credit gets repaid before equity, making credit into what we believe to be a safer strategy, albeit with lower expected returns. Credit funds tend to be shorter duration, both investing and returning capital more quickly than most private markets strategies. Credit funds also typically provide a cash yield that is paid quarterly, which is important for investors who want interim liquidity. Finally, investments can be made in private credit securities that are both floating and fixed rate, creating opportunities to hedge both rising and falling interest rate environments.
Committed
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0
B+
As of 12/31/24
Team members
0
Years of experience
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Our approach to private credit
When comparing HarbourVest to almost any other private credit provider, we believe the biggest differentiator is our platform. HarbourVest is one of the world’s largest investors in buyout funds and we have developed close relationships with buyout GPs around the world. We believe these firms turn to us to provide credit to their portfolio companies, affording us something we call our “allocation advantage.”
In our experience, clients seeing to allocate private credit appreciate the HarbourVest difference, including our platform size, differentiated approach, tailored solutions, and strong sponsor relationship network.
“We feel private credit has become a mainstay of private markets portfolios.”
Peter Lipson
Managing Director
“Because of our longstanding close relationships with buyout GPs, we believe the same firms turn to us to provide credit to their portfolio companies – something we call our “allocation advantage.”
Karen Simeone
Managing Director
Investors: Why consider HarbourVest?
The asset class has tripled over the past 10 years into a $1.5+ trillion universe that rivals the size of the high yield and syndicated loan markets.
Whether you are an LP seeking access to credit investment opportunities or a GP seeking trusted and reliable tailored financing solutions, we feel that HarbourVest can help achieve your goals. Our position as a large, experienced LP can provide access to credit opportunities across the platform and preferred allocation.
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