Tue, January 28, 2025
[ Tue, Jan 28th ]: LAist
Insurance and wildfires
Mon, January 27, 2025

What is a private credit transaction? Know types and eligibility criteria

  Copy link into your clipboard //business-finance.news-articles.net/content/202 .. saction-know-types-and-eligibility-criteria.html
  Print publication without navigation Published in Business and Finance on by cnbctv18
          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Private credit transactions can involve a variety of debt instruments and are generally considered riskier than traditional loans due to their more tailored and less regulated nature. Although they frequently provide lenders with higher returns,
The article from CNBC TV18 discusses private credit transactions, which are loans provided by non-bank entities to companies, often those not large enough to access public bond markets or seeking more flexible financing terms than traditional banks offer. Private credit includes various types such as direct lending, mezzanine financing, and distressed debt, each serving different needs from providing capital for growth to restructuring finances of distressed companies. Eligibility for private credit typically involves companies that are too small for public markets, have high leverage, or require bespoke financing solutions. These transactions are attractive due to potentially higher returns for investors and less stringent regulations compared to conventional banking, but they also come with higher risks due to the nature of the borrowers and the bespoke nature of the deals. The article outlines the types of private credit, the eligibility criteria for borrowers, and the benefits and risks associated with this form of financing.

Read the Full cnbctv18 Article at:
[ https://www.cnbctv18.com/alternative-investment-fund/what-is-a-private-credit-transaction-know-types-and-eligibility-criteria-19547506.htm ]