New automated private credit solution launches for US wealth market

Investment adviser Heron Finance has launched an automated private credit solution to make it easier for US individuals to access the asset class.

The new offering creates individual portfolios, based on the investor’s personal risk profile. The portfolios give exposure to a variety of private credit fund managers, thus diversifying investors’ funds across hundreds of senior secured loans.

There is a one per cent management fee and no early withdrawal fees.

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The personalised private credit portfolio targets returns of seven to 12 per cent after fees.

“We’re excited to introduce a private credit solution that not only provides access to institutional-grade deals but also provides investors with a personalised portfolio based on their preferences,” said Mike Sall, co-founder and chief executive of Heron Finance.

“We believe this level of personalisation has never been possible before with such high-quality credit funds. Heron’s personalised private credit portfolio opens up opportunities to a broader audience, offering the access and transparency traditionally associated with more public markets.”

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Private credit fund managers are increasingly tapping the wealth market as a new distribution channel, in order to diversify their sources of funding and meet their growth ambitions.

But some argue this has increased risks around the asset class, as pressure to deploy funds has loosened underwriting standards.