Private credit funds. They’re not banks, but they lend like banks. The only difference is they’re not regulated like banks. Their interest rates are much higher.

For example, while a bank might lend you at 5-7%, these charge 10-15%. Because they’re taking on the risk that the bank refused. In 10 years, this market grew to $2 trillion.

Who’s putting in the money? – Pension funds.

– Insurance companies.

– University endowments.

– Banks.

– Sovereign wealth funds of Gulf countries.

It was promised as high returns, more profitable than bonds, more stable than stocks—it was marketed that way.

Everyone was happy. Until now.