April 2026
Private credit, in our view, can complement traditional fixed income strategies by offering enhanced income, historically lower volatility, total return potential, and meaningful diversification.
Private credit offers potential for portfolio diversification, enhanced yield, and attractive risk-adjusted total returns.
As of April 2026 – Unless otherwise stated
Private Credit encompasses loans to borrowers that are originated outside the traditional banking system or public fixed income markets.
The private credit universe continues to expand and diversify, spanning four primary lending categories.
Credit encompasses far more than a single bond type– it spans a broad spectrum of structures across both private and public markets.
| Private Credit | Public Credit | |
| Number of Lenders | Small # — Bilateral to Club Deal | Large # – Asst Mgrs, Banks, Retail |
| Covenant Protection | Moderate – High | Low – Moderate |
| Origination | Directly Originated | Broadly Syndicated |
| Liquidity | Mostly Illiquid | Daily Market Liquidity |
| Interest Rate | Predominantly Floating, but can be fixed | Predominantly Fixed |
| Return Drivers | Credit, Illiquidity & Complexity Premia | Credit & Interest Rate Risk Premia |
Direct lending segment of the private credit AUM has scaled more than fivefold since 2010, reaching a milestone of $2.2 trillion in 20251. This rapid expansion underscores a fundamental shift in capital markets, with expectations for continued double-digit growth driven by persistent demand for flexible, non-bank financing solutions.
Notes:
1. Source of data is Preqin, December 2025
Loan terms, yields, and spreads evolve through market cycles. Following a period of significant rate normalization, all-in yields for private credit lenders remain materially elevated relative to the low-rate environment of prior years– creating a compelling entry point for investors deploying capital today.
Private markets offer borrowers meaningful advantages beyond pricing – particularly during periods of public market volatility or uncertainty.
Investors can gain exposure to this asset class through several structures, each with distinct characteristics around liquidity, accessibility and risk. Understanding how these vehicles differ– and how they align with your investment objectives, time horizon, and liquidity needs– is key to effectively accessing private credit.
| Private LP | Interval Fund | Listed Closed-End Fund | |
| Offering | Limited Investment Period | Continuous | One Time via IPO |
| Liquidity | Capital returned after multi-year investment period | Quarterly Redemption | Exchange Trade |
| Pricing | Monthly or Quarterly NAV | Daily NAV | Market |
| Valuation | Monthly or Quarterly | Daily | Daily |
| Tax Reporting | K-1s | 1099-DIV | 1099-DIV |
| Fees | Management + Incentive Fees | Typically, Managment Fee | Typically, Management Fee |
| Accreditation | Qualified Purchaser ($5mm net worth) | No Requirements* | No Requirements |
*as of March 2026
Disclosures
Nomura Capital Management, LLC (“NCM”) is a registered investment adviser. The information set forth within this publication, or in any of NCM’s market commentaries or similar writings or publications, is for informational purposes only and does not constitute financial, investment, tax or legal advice. This information within this publication is intended to be informational and educational in nature and, by receiving this communication, you agree with its intended purpose described above. The views and/or strategies described in this communication may not be suitable for all investors. Prior to making any investment or financial decisions, an investor should seek individualized advice from personal financial, legal, tax and other professionals that consider the particular facts and circumstances of an investor’s own situation. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio.
These materials reflect the opinion of NCM on the date of production. Opinions and statements of financial market trends that are based on current market conditions constitute our judgement and are subject to change without notice. Past performance does not guarantee future results. Where data is presented that is prepared by third parties, such information will be cited, and these sources have been deemed to be reliable. However, NCM does not independently verify or otherwise warrant the accuracy of this information. All investments are subject to risks, including the risk of loss of principal.