Outside the Box
Private credit is less risky than private equity. And be aware of the No. 1 rule for choosing a private-equity fund.
Last Updated:
First Published:
Private equity and private credit are going to change the retirement landscape. New rules will open 401(k) plans to asset classes once reserved for pensions, endowments and billionaires.
Once these alternative investments are available, retirement investors will have the potential for higher returns — but they will also face also new complexities including higher fees, longer lockup periods and less transparency than with stocks and bonds. Understanding the trade-offs and the differences between private credit and private equity is critical for anyone considering them.
