Unlocking High Returns: Mastering Private Credit Investments

Retail investors can tap into the high yields of private credit by investing in business development companies (BDCs). BDCs lend to small or medium-sized businesses that don't have access to public debt markets. These companies typically pay out 90% of their earnings as dividends and offer annualized yields ranging from 6% to over 16%. Some reliable performers in the BDC space include Blue Owl Capital, Ares Capital, Golub Capital BDC, Oaktree Specialty Lending, and Sixth Street Specialty Lending. Investors can also consider the VanEck BDC Income ETF for diversification. However, it's important to carefully evaluate BDCs as they can be vulnerable to economic downturns and their performance may not always match their dividend payouts.