Here’s Why I’m Excited to Add Private Credit To My Financial Portfolio

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You’ve probably heard that a diversified financial portfolio is a stronger portfolio. But what does that actually mean — and what’s the smart way to choose the best investment products for my goals?

It’s a tough market out there and I didn’t want to go at it alone. During my research, I went on a deep dive into alternative investments so I could learn more about my options outside of traditional accounts like 401Ks. I’m glad I did because there were some surprises along the way, and one method that was completely new to me. 

I stumbled over private credit, which is a relatively recent development in the market. It has a history of high returns and low volatility, which is a plus point for me. In theory, private credit can be anything from a company securing millions of dollars in funding to lending a friend pizza money. As long as it’s not happening in the public markets, it’s considered private credit. If you’re thinking there’s a bigger story behind this, you’re right. So let me share what I found out about private credit, other investment routes, and what this all truly means.

Private credit


Private credit, also known as direct lending, is an emerging alternative form of investment. So far, the yields are typically higher than traditional fixed-income funding, at a lower loss ratio than traditional high-yield bond investments. It’s non-banking lending and used to only be available to investor entities with a significant amount of money. Their assets would be invested for a long, locked period of time — think three to five years. 

But a lot of these restrictions are changing for the better. There are new ways for the average Joe to invest in private credit without a rich relative or a lottery payout. These new approaches also shorten the lockup periods, so you can pull your money out earlier if you need to. This means more people can invest in private credit alongside the big institutions. That’s huge. 



The memes investment! While crypto certainly has its own interesting currency denominations, other coins on blockchain have made quite a name for themselves as well. What makes up the blockchain is a very, very large network of transaction records that make assets almost impossible to counterfeit. This decentralized system ensures there’s not one single point of failure and doesn’t require a centralized authority, like a government, to oversee it. All in all, this investment type has more transparency and liquidity. 

The pros of crypto are cheaper and faster money transfers. There are also not as many regulations as traditional investments (yet). There are downsides to crypto though. It’s known for volatile performances with significant price fluctuations, and this can happen in a relatively short period.  

Real estate

Real estate investments include personal homes, commercial properties, and real estate investment trusts (REITs). REITs are companies that own or operate income-producing properties like vacation rentals. 

All of these real estate investments are great for monthly income streams. But physical real estate asset sales can take months or years to acquire. They require ongoing maintenance and aren’t easily convertible to cash (this is called illiquid). Real estate investments are also impacted by interest rate changes, conditions of local markets, and other factors. For many, real estate might not be the most practical option.

Stocks and bonds

These are some of your most well-known traditional investments. Stocks are purchase-shares of a business, which means you get a part of their profits and losses. The tricky thing with stocks is that you have to assess your risk tolerance and pick the ones that line up with your goals. You have to know the market, the company’s finances, and its growth potential extremely well. 

Bonds are normally issued by the government and corporations as debt securities. In simpler terms: you’re lending money to the ones issuing the bonds. The money you get back on investing in bonds is interest payments on top of the original amount. It’s a reliable, albeit calm, choice if you want a fixed-income or fixed-interest investment

Private credit is just right for me

I don’t have an investment manager at a bank and I don’t want to invest just on my own hunches. Crypto has its ups and downs. Stocks and bonds seem slow to me. And like many, I’m not in a position to purchase a house right now. So when looking at all the traditional investment routes, most of them felt too restricted and with no big enough reward. 

Private credit offers exactly what I’m looking for. It averages higher returns than stocks but with the consistency of bonds — stability and growth, all at once. I’m excited to get started with private credit. One place I’m really interested in is Heron Finance.

Heron Finance makes it easier to invest in private credit globally with only a $100 minimum investment requirement. The platform lets accredited investors invest in a diversified portfolio of loans to small and medium-sized businesses. These opportunities used to be reserved for the ultra-wealthy, but not anymore. Heron has strict criteria for the deals on its platform, and every deal has undergone a rigorous analytical process designed to reduce risk. Only the most creditworthy borrowers are offered through Heron.

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Disclaimer: This article was written by a person who is not a current investor with Heron Finance. Heron Finance provided Peoplehype with de minimis cash compensation for this article. This article is not representative of all client experiences. Investing involves risk, including the possible loss of principal and fluctuation of value. Past performance is no guarantee of future results.

Additional information about Heron Finance is available in its current disclosure documents, Form ADV, Form ADV Part 2A Brochure, and Client Relationship Summary report which are accessible online via the SEC’s Investment Adviser Public Disclosure (IAPD) database at