How Can You Invest in Private Credit via a Wealth Manager?

Private credit is one of the fastest-growing areas of private markets, offering investors attractive income streams and diversification away from public bonds. Once the preserve of institutions, it’s now increasingly accessible to UK individual investors and private clients through wealth managers. In a world of higher interest rates, private credit becomes even more compelling, as new loans can be priced at elevated yields, helping investors maintain income and resilience even in changing market conditions ^[1].This guide outlines the main ways UK investors can gain exposure to private credit, the structures through which they’re typically accessed, and how a wealth manager can help navigate this complex but rewarding asset class.

What Is Private Credit and Why Does It Matter for Investors?

Private credit refers to lending that takes place outside traditional bank lending and public debt markets. It matters for investors because it offers attractive yields, portfolio diversification, and lower correlation to equities, helping achieve income and risk management goals. In this article we will cover the following investment options:

• Fixed Income Funds with Private Credit Exposure
• Listed Private Credit Investment Trusts
• LTAFs (Long-Term Asset Funds)
• Evergreen funds and Semi-Liquid Credit Funds
• Feeder Platforms
• Direct Lending via Specialist Platforms

Each comes with its own risk-return profile, liquidity terms, and role within a portfolio, and the guidance of a wealth manager is key to structuring the right blend ^[2].

Fixed Income Funds with Private Credit Exposure: Liquid Access with a Credit Tilt

For private clients seeking income and diversification without locking up capital, fixed income funds with partial exposure to private credit offer an accessible route. These funds are typically daily-dealing and invest across a blend of public credit and private credit instruments, including syndicated loans, private placements, and selectively originated deals ^[3].

While they don’t offer the full return potential of dedicated private credit vehicles, they can serve as a liquid complement to more illiquid strategies, delivering enhanced yield and supporting portfolio diversification in a portfolio-friendly format. Some real world of example of this are:

• M&G Global Floating Rate High Yield Fund: Allocates to both public and privately originated high-yield loans, with a focus on downside protection.
• Royal London Short Duration Credit Fund: Uses private placements to enhance yield in a low-duration framework, suitable for income-focused portfolios.

Benefits:

• Daily liquidity: Investors can redeem at any time, making these funds suitable for portfolios requiring regular access to capital and integrated risk management..
• Portfolio flexibility: Can be used as a stepping stone toward deeper private credit exposure, or as a liquid anchor alongside illiquid holdings.

Considerations:

• Lower private credit allocation: These funds typically allocate only 5–25% to private credit, meaning they offer exposure, not full participation, in the asset class.
• Limited return potential: Because they prioritise liquidity and rating quality, returns may be lower than direct private credit funds.

Listed Private Credit Investment Trusts: A UK-Listed Route into Private Lending

For UK investors, listed investment trusts are one of the most straightforward ways to access private credit. They provide exposure to strategies such as direct lending, infrastructure debt, and specialist credit, all packaged in the form of a publicly traded share.

These vehicles are listed on the London Stock Exchange and managed by specialist credit teams. Their objective is to deliver stable, inflation-aware income with lower correlation to traditional equities and bonds. Some examples of listed trust are:

• RM Infrastructure Income (RMII): Focused on UK-based infrastructure lending including energy transition, housing, and social care, with the aim of generating secure, asset-backed income.
• CVC Income & Growth (CVCG): Offers a portfolio of European senior secured loans, many originated through CVC’s private debt platform.

Benefits

• Daily liquidity through investment platforms and brokers, giving flexibility that private markets rarely provide.
• Regular dividends, typically paid monthly or quarterly, supporting predictable cash flow for investors.

Key Considerations

• Premiums and discounts to net asset value (NAV) can create price swings that do not reflect fundamentals.
• Public market sensitivity means the share price can move with wider equity markets, even if the loans themselves remain stable.
• Limited transparency compared with bespoke private mandates, leaving investors with less detail on underlying loan positions.

Investment trusts bring private credit into reach for a broader set of investors. They combine accessibility and income with the trade-offs of listed structures: market-driven pricing and reduced transparency. For those seeking yield with liquidity, they can be a useful complement to less flexible private credit vehicles.

LTAFs: A UK-Regulated Route into Private Credit and Illiquid Assets.

The Long-Term Asset Fund (LTAF) is a new UK fund structure introduced by the FCA in 2021 to widen access to private markets, including private credit, for private clients and pension savers. Positioned between institutional strategies and retail products, LTAFs combine broader access with greater regulatory oversight, transparency, and suitability controls ^[4].

LTAFs can hold illiquid assets such as loans to private companies, infrastructure debt, private equity, and real estate. Their design allows them to invest over multi-year horizons while still offering periodic liquidity, typically quarterly, making them particularly relevant for private credit allocations. Some examples of LTAFs in the market currently are:

• Schroders Capital Climate+ LTAF: Allocates to private credit and infrastructure debt within a sustainable investment framework.
• Aviva Investors Real Assets Fund (transitioning to LTAF): Focused on real estate and infrastructure debt, with plans to broaden into private credit.
• Octopus Investments (planned LTAF): Targeted at UK wealth managers, with allocations to private credit and renewable lending.

Benefits

• Regulated structure: FCA-authorised with strict rules on liquidity management, disclosure, and governance.
• Quarterly liquidity: Offers redemption opportunities every 3–6 months, unlike traditional closed-ended funds.
• Broader access: Suitable for advised portfolios and increasingly for defined contribution pensions and SIPPs.
• Diversified exposure: Combines private credit with other long-term assets, spreading risk and income sources.

Key Considerations

• Still early stage: LTAFs are new, with a limited track record and few active funds available.
• Liquidity not guaranteed: Redemption requests may be gated or delayed in stressed markets.
• Not direct substitutes: LTAFs prioritise diversified access and investor protection, rather than replicating institutional credit strategies.

LTAFs are expected to play a growing role in opening private markets, and private credit in particular, to UK private clients and pension savers. By combining access, diversification, and regulatory safeguards, they represent a more familiar wrapper for investors seeking long-term income and resilience.

Evergreen and Semi-Liquid Credit Funds: Flexible Access with Institutional Exposure

Evergreen and semi-liquid credit funds act as a bridge between traditional closed-ended private credit and liquid public markets. They provide exposure to typically illiquid loans, such as senior secured and asset-backed lending, but with more flexible structures. Unlike classic 5–10 year lock-up vehicles, these funds raise and deploy capital continuously, accept new investors, and offer quarterly redemption windows, subject to available liquidity ^[5].

Private clients turn to these funds for yield without sacrificing all liquidity. They offer ongoing access, streamlined onboarding, and regular NAV reporting, making them easier to integrate into discretionary portfolios. Some examples of semi-liquid credit funds are:

• Partners Group Private Credit: Diversified exposure to global private credit, spanning senior and subordinated debt.
• Schroders Capital Semi-Liquid Credit Fund: Combines traditional loan strategies with simplified onboarding and consistent reporting.

Benefits

• Ongoing access: Investors can build positions gradually through regular subscriptions.
• Quarterly liquidity: Redemption windows every 3–6 months create flexibility absent in closed-ended funds.
• Simplified experience: Transparent NAV reporting and standardised documentation improve the client journey.

Key Considerations

• Liquidity limits: Redemption rights can be restricted during market stress or if loans cannot be sold.
• NAV lag: Valuations are reported monthly or quarterly, based on internal models rather than live pricing.
• Yield pressure: Growing capital inflows may compress returns, though evergreen credit often remains less volatile than listed equities.

For investors seeking steady income with measured flexibility, evergreen private credit funds provide an attractive middle ground. They won’t replace closed-ended vehicles for maximising returns, but they can serve as a practical entry point to private markets.

Private Credit via Feeder Platforms: Institutional Access with Lower Minimums

Feeder platforms act as gateways to institutional-grade private credit, pooling private investor commitments into single-entry vehicles. By aggregating demand, they overcome the usual barriers of high minimums and complex onboarding, securing allocations that would otherwise be out of reach.

For UK high-net-worth investors, feeders provide access to specialist credit strategies, from direct lending to asset-backed and opportunistic credit, that are typically closed to retail channels. Some examples of feeder platforms are:

• Moonfare: Access to private credit funds managed by KKR, Partners Group, and Blue Owl, with minimums from around £50,000.
• Connection Capital: Packages direct lending and credit strategies into pre-vetted single-deal structures or multi-manager feeders for UK clients.
• Titanbay: Serves wealth managers and family offices, providing access to flagship credit funds with enhanced due diligence and platform support.

Benefits

• Lower entry points, often £50k–£100k, compared with institutional commitments in the millions.
• Direct access to global managers and niche credit strategies rarely available to individuals.
• Streamlined onboarding, reporting, and capital call management handled by the platform.

Key Considerations

• Illiquidity remains, with funds structured as closed-ended vehicles running five to seven years.
• Additional platform and administration fees sit on top of the fund’s charges.
• Little flexibility, as investors subscribe to pre-set structures with limited influence over terms.

Feeder platforms have opened private credit to a broader investor base. They offer a practical route into high-quality lending strategies once reserved for institutions, provided investors accept the trade-offs of illiquidity, extra costs, and limited control.

Direct Lending via Specialist Platforms: Targeted Yield with Greater Control

Direct lending is one of the most hands-on routes into private credit. Instead of pooled funds, investors provide loans directly to businesses or property developers, bypassing banks and choosing which opportunities to back. This model offers greater transparency and control, with some UK platforms enabling investment into single loans alongside asset-backed security.

Direct lending appeals to private investors seeking higher-yielding debt as an alternative to corporate bonds. Typical strategies include SME financing, bridging loans, and property development, used either directly by individuals or integrated by wealth managers into broader allocations. Some examples of direct lending platforms are:

• Cohort Invest: Access to loans originated by Cohort Capital, including secured SME and real estate debt.
• Kuflink: UK peer-to-peer platform focused on property-backed loans, with options for individual or pooled portfolios.
• West One Capital: Specialist lender in bridging, development, and buy-to-let finance, often accessed via feeder platforms or institutions.

Benefits

• Higher yields, typically 7–12 percent depending on risk and term.
• Transparency, with visibility into borrower, collateral, and loan structure.
• Shorter durations, often 6–24 months, allowing faster recycling of capital.

Key Considerations

• Platform and borrower risk: Returns depend on robust origination and recovery.
• Liquidity limits: Early exit is rarely guaranteed, with secondary markets limited.
• Concentration risk: Small portfolios heighten exposure to individual defaults.

Direct lending combines high income potential with transparency and control rarely found in private credit. It can complement a wider portfolio, but success relies on careful diversification and due diligence to manage platform, liquidity, and borrower risk.

Making Private Credit Work in Your Portfolio

Private credit is no longer a niche asset class reserved for institutions. Through a wealth manager, UK private clients now have access to a broad spectrum of structures, from listed investment trusts and evergreen funds to LTAFs, feeder platforms, and direct lending opportunities. Each route offers a different balance of yield, liquidity, transparency, and complexity.

The key to success lies in matching the right structure to your individual goals, risk appetite, and time horizon. A well-constructed private credit allocation can enhance income, add resilience during rate cycles, and provide valuable diversification away from traditional bonds.

With the guidance of a skilled wealth manager, who can vet platforms, monitor underlying risk, and integrate private credit seamlessly into your wider portfolio, this once-inaccessible asset class can become a powerful and purposeful part of your long-term financial plan.