Private Credit & Yield

Private credit is the portfolio's income engine — eight distinct credit positions spanning real estate bridge lending, residential fintech, affordable housing debt, litigation finance, insurance-linked credit, and structured preferred instruments. What unites them is not the underlying collateral but the structural approach: each position benefits from contractual cash flows, defined seniority, covenant protections, or asset security that limits downside relative to equity while generating current yield in the 7–16% range.

This allocation was built intentionally as a counterweight to the long-duration, illiquid equity and venture positions elsewhere in the portfolio. Where Innovation & Growth positions may take 7–10 years to realize — and carry binary outcomes — credit positions generate quarterly income, return capital on defined schedules, and perform reasonably well across market conditions. The retreat of regional banks from construction and bridge lending has created a particularly attractive environment for well-structured private lenders, and several of our managers have benefited directly from that dynamic.

The breadth across credit types is also a form of diversification that traditional fixed income cannot provide. Real estate bridge debt behaves differently than litigation finance, which behaves differently than LIHTC housing debt or insurance-linked credit. The common thread is that each position was underwritten on the quality of the collateral or cash flow — not on a forecast of equity appreciation. That discipline is what makes this bucket function as genuine portfolio ballast.