
Private Credit: The Hidden Risks Behind Double-Digit Returns
Private credit is booming, with some funds offering returns of 10%, 15%, even 20%. But are those higher yields worth the risk? In this episode of Invest Like a Billionaire, Bob Fraser, Ben Fraser, and Ellis Hammond break down what's really driving private credit returns, why some funds are reporting profits they haven't actually collected, and the hidden risks investors need to understand. They explore the difference between cash flow and paper returns, how leverage can inflate yields, why private credit is attracting attention, and where they're seeing compelling opportunities in real estate-backed lending. Plus, how does private credit compare to bonds, and what should investors look for before investing? Whether you're considering private credit for passive income, portfolio diversification, or higher yields, this episode will help you understand the opportunities, evaluate the risks, and look beyond the headline returns. Enjoyed this episode? Hit follow so you never miss a new episode. If you found it valuable, leave us a rating and send this episode to someone who should hear it. Have a question for the show or want more resources, including our tax calculator? Visit https://investlikeabillionaire.org/ to explore more and join our community. Want to invest alongside Ben, Bob & Ellis? Learn more at https://aspenfunds.us/