When most people hear private credit, they immediately think of direct lending to PE firms financing leveraged buyouts.

But that’s only one part of the market!

Private credit is really just capital that is lent privately instead of through public bond markets.

And it touches every part of the economy.

I love:

1. Finding niche, idiosyncratic, uncorrelated risk drivers
2. Organizing them by tax-exempt vs taxable for asset location purposes

Some tax-exempt private lending opportunities could include:

• Affordable housing
• Senior living communities
• Charter schools
• Airport facilities
• Water infrastructure

These ones could be great to hold in a taxable brokerage account.

Some of the more esoteric taxable lending opportunities might be:

• Music royalties
• Government receivables
• Litigation finance

Take this (and your direct lending if you want to have that too) and put it in your IRAs.

Now you’ve got broad, diversified exposure held in the most tax-efficient way possible. ✅