Access up to 10%* p.a. target returns with Private Credit

Private credit refers to loans made by non-bank lenders, such as private equity firms, hedge funds, or direct lending platforms, to businesses seeking financing. These loans are not traded on public markets (like bonds), and the terms are negotiated directly between the lender and the borrower. Private credit usually offers more flexible terms in return for higher interest rates, and can include different types of debt like senior secured loans or mezzanine financing that vary in risk-return profile.

Unlike traditional bond funds, private credit gives you access to privately negotiated loans that are not traded in public markets. These loans often offer higher yields and risk management due to their collateral and position in the capital structure, such as with senior secured private credit (highest seniority). However, they also typically come with restricted liquidity and lock-up periods compared to public market instruments.

- Higher yield potential: Because private loans are less liquid and use tailor-made contracts, they often pay a premium.

- Risk management through seniority structure: Private credit includes loans that are provided to companies at varying risk levels and therefore provide varying return profiles as well. This is called a seniority structure. Senior secured private loans sit at the top of the capital structure for priority repayment, offering a layer of protection in the rare event of a default.  

- Low correlation to public markets: Private credit typically has a low correlation to public markets, which helps diversify your portfolio and reduces overall volatility. Unlike public bonds, private credit instruments are not traded on exchanges and are therefore not marked-to-market daily — this results in more stable returns that are less affected by short-term market swings.

- Restricted liquidity: Unlike public bond funds, private credit products have traditionally come with multi-year lock-ups ranging from 3-10 years. 

Private Credit is a USD-denominated yield-generating portfolio only available to Accredited Investors (AIs).

The strategy utilises a diversified mix of private loans, focusing on senior secured debt—loans that are backed by collateral and sit at the top of the capital structure, and is suitable for clients looking for improved yields through private markets exposure while keeping risk managed.

StashAway has partnered with Hamilton Lane, a leading private markets specialist, to offer clients access to institutional-grade private credit. Hamilton Lane uses its extensive industry experience to select a diversified mix of expert credit managers, connecting clients to a collection of complementary investment specialists. This structure gives clients multi-manager exposure through a single, accessible investment.

No, the target returns are based on the characteristics of senior secured private credit, which tends to offer stable, contractual income streams due to its position at the top of the seniority structure. Actual returns may vary depending on market conditions, and returns are not guaranteed.

1. Verify your Accredited Investor (AI) status

Head to your StashAway app or web app to submit your AI verification documents. If you’re already verified, you’re good to go.

2. Access the Private Credit portfolio

Once verified, you’ll be able to view fund-level details and invest directly from the app.

3. Make a deposit

Follow the in-app instructions to subscribe.