What if the word “debt” didn’t signal something negative, but instead pointed to a powerful income-generating opportunity? Aman Pujara, Director of Quantitative Research and Portfolio Construction at Syfe, explains more.
That’s exactly how more investors—especially accredited investors in Singapore—are starting to think about bonds and private credit. Amid ongoing equity market volatility, debt instruments are being re-evaluated not as burdens, but as building blocks of a more stable and diversified investment portfolio.
In particular, private credit is quickly gaining traction as a source of attractive returns and consistent cash flow. Once limited to institutional investors and ultra-high-net-worth individuals, it’s now more accessible than ever, thanks to digital investment platforms and strategic partnerships with global asset managers.
If you’re an accredited investor exploring ways to diversify your portfolio, this guide will break down what private credit is, how it differs from traditional fixed income, and why now may be the right time to get started.
What Is Private Credit?
At its core, private credit refers to loans made directly to companies by non-bank lenders. These loans are not traded on public exchanges, and the investment structures are often bespoke, tailored to suit the specific needs of both the borrower and the lender.
Think of it this way: When you invest in private credit, you’re essentially acting as a lender, receiving interest payments over time and the return of your principal at the end of the loan term. Unlike traditional bank lending, these loans are typically arranged by alternative asset managers who specialise in structuring, monitoring, and managing these credit deals.
The asset class has grown substantially in recent years. Following the 2008 Global Financial Crisis, stricter banking regulations meant that many mid-sized companies could no longer rely on banks for loans.
Enter private credit: a flexible financing solution that has since become a US$1.7 trillion global market, expected to reach US$3 trillion by 2028.
For investors, this presents a compelling opportunity to tap into a relatively low-volatility asset class that can deliver consistently higher yields than traditional bonds or savings products.
How Private Credit Differs From Traditional Bonds
Private credit and traditional bonds both fall under the umbrella of debt investing, but they differ in several meaningful ways.
| Feature | Public Bonds | Private Credit |
| Liquidity | Highly liquid; traded on public exchanges | Illiquid; not traded publicly |
| Access | Open to all investors | Historically limited to institutions or HNWIs |
| Return potential | ~3%–5% (investment-grade bonds) | Typically 8%–10%+ p.a. |
| Structure | Standardised, transparent | Bespoke, negotiated terms |
| Risk profile | Lower credit risk | Higher credit and liquidity risk, but often secured |
Private credit investors often benefit from structural protections such as collateral, interest rate floors, and covenants designed to protect the lender’s capital. This added complexity often results in more favourable risk-adjusted returns, but it also means that due diligence is critical when choosing the right fund or platform.
Why Accredited Investors Are Paying Attention
Singapore is widely known as a nation of savers. But in today’s low interest rate environment, simply leaving money in the bank is no longer enough to preserve—let alone grow—wealth. For accredited investors who meet the criteria set by the Monetary Authority of Singapore (MAS), private credit offers a rare combination of yield, stability, and diversification.
Here’s why private credit is gaining popularity:
1. Attractive Yield in a Low-Rate World
With Singapore savings accounts offering minimal interest and T-bills seeing yields trend lower amid potential central bank rate cuts, private credit—with target returns of 8–10% p.a.—stands out.
2. Monthly Cash Flow
Unlike equities, which may not pay dividends consistently, private credit investments typically deliver predictable monthly income, making them attractive for income-focused investors.
3. Lower Volatility
Because private credit deals aren’t priced daily on public markets, their valuations don’t fluctuate with market sentiment. That makes them a useful portfolio stabiliser, particularly during periods of equity market turbulence.
4. Diversification
Private credit adds exposure to non-correlated return streams, which helps reduce overall portfolio risk and dependence on stock market performance.
What to Consider Before Investing
While the benefits are clear, private credit isn’t without its risks. Before committing capital, accredited investors should understand the unique characteristics of the asset class.
- Illiquidity: Most private credit funds have lock-up periods, meaning your capital is committed for a certain duration. Historically, these could be as long as 5–10 years. However, modern solutions such as those offered by Syfe now provide lock-ups as short as 12 months.
- Complexity: These are customised, negotiated loans, which can be difficult to evaluate without a seasoned manager. The legal structures, covenants, and deal terms require professional oversight.
- Manager Selection: Arguably the most important factor. Investors should prioritise managers with a strong track record, robust risk controls, and deep underwriting experience.
Syfe Private Credit: Curated Access with Global Partners
To make private credit more accessible to accredited investors in Singapore, Syfe has partnered with BlackRock, the world’s largest asset manager.
Through this partnership, Syfe offers institutional-grade private credit opportunities that were once only available to large institutions, now at minimum investment sizes of US$50,000.
Key Features:
- Target Net Returns: 10%+ per annum
- Focus: Lending to US middle-market companies
- Manager: BlackRock, Monroe Capital, Silverdale
- Lock-up Period: 1 year, with flexible withdrawal options thereafter
These curated products give accredited investors in Singapore an efficient, lower-barrier entry point into premium private credit strategies, offering high yield and low correlation to public markets.
Syfe’s rigorous due diligence and exclusive partnerships with globally respected managers ensure that every private credit product meets high standards of quality, transparency, and investor protection.
Final Thoughts: Why Now?
In today’s uncertain investment landscape shaped by geopolitical tension, fluctuating interest rates, and global trade disruptions, building a resilient, income-generating portfolio is more important than ever.
Bonds continue to play a critical role as portfolio stabilisers, especially high-quality investment-grade options. But for accredited investors seeking more, private credit is emerging as a smart complement, delivering higher returns, consistent income, and long-term growth potential.
For a deep dive into private credit, check out the recent MoneyFM interview with Aman Pujara, Director of Quantitative Research and Portfolio Construction at Syfe.
Explore Syfe Private Credit Opportunities
Ready to put your capital to work more effectively? Explore Syfe Private Credit, a gateway to institutional-quality debt investing, managed by global leaders like BlackRock, Monroe Capital, and Silverdale.
To join Syfe Private Wealth, you’ll need to first qualify as an Accredited Investor and fulfill 2 other criteria:
- Minimum AUM of S$500K
- Minimum investment of US$50K into AI-only offerings.
Note: As with all investments, capital is at risk and returns are not guaranteed.
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