Private credit has emerged as one of the most dynamic and sought-after asset classes in recent years. From real estate and infrastructure debt to direct lending and asset-backed finance, the sector has grown exponentially, fueled by investor appetite for yield, diversification and access to alternative markets. But beneath the surface of this rapid expansion lies a complex web of risks that wealth advisers must not overlook.

THE ALLURE — AND ILLUSION — OF YIELD

In a world of compressed returns and volatile public markets, private credit offers the promise of stability and income. For high-net-worth (HNW) and ultra-high-net-worth (UHNW) investors, the appeal is clear: bespoke structures, floating-rate instruments and access to deals once reserved for institutions. Yet, as the International Monetary Fund and Federal Reserve have warned, the very features that make private credit attractive — its opacity, lack of regulation and bespoke nature — al