Unlocking the Value of Private Credit: A Look at Goldman Sachs’ Global Insurance Survey and a New ETF Solution

Goldman Sachs recently released its 13th annual Global Insurance Survey, shedding light on the growing interest in private credit among insurance companies. With concerns about economic slowdowns and declining interest rates, insurance companies are turning to private credit as a way to improve resiliency and generate higher yields.

Private credit, which involves non-bank lending directly to companies, offers several advantages, including attractive returns, diversification, income generation, direct lending opportunities, and protection in downturns. To provide retail investors with access to this asset class, Accelerate Financial Technologies Inc. launched the Accelerate Diversified Credit Income Fund (Ticker: INCM), Canada’s first private credit ETF.

The Accelerate Diversified Credit Income Fund aims to deliver exposure to alternative income sources by focusing on private credit and direct lending. With a targeted 10% yield paid monthly, the Fund offers investors the opportunity to invest in a diversified portfolio of senior secured floating-rate loans to private middle market companies. This ETF provides the convenience, transparency, and liquidity of an ETF while offering exposure to the attractive yields of private credit.

As institutional investors increasingly turn to private credit, individual investors may also find value in this asset class. Private credit offers unique financing options for businesses and attractive returns and diversification benefits for investors. However, it is essential to seek advice from a registered financial professional before making any investment decisions.