Non-traditional lending investments, like peer-to-peer loans or distressed debt.
Description
Alternative credit includes investments in non-bank lending, such as peer-to-peer loans, private debt, or distressed credit, used by family offices for high-yield diversification. These assets offer attractive returns but carry credit, liquidity, and regulatory risks, requiring specialized expertise. Due diligence on borrowers and platforms is essential. Alternative credit appeals to sophisticated investors seeking income.