Why Private Credit

Private credit refers to directly negotiated lending to companies and asset platforms outside public markets. It expanded post‑GFC as banks retrenched and borrowers required bespoke, reliable capital. For borrowers: speed, confidentiality, customization. For investors: floating‑rate income, collateral protection, structural control, and diversification.

Structures span senior secured, unitranche, mezzanine, and asset‑backed facilities. Transactions are designed with covenants, borrowing‑base mechanics, and reporting that surface risk early. The illiquidity premium, combined with disciplined underwriting and collateral frameworks, can support attractive risk‑adjusted returns.

• Liquidity: Less tradable; we mitigate via appropriate duration, amortization, and clear exit paths.
• Concentration: We diversify across borrowers, sectors, and structures with measured position sizing.
• Covenant reliance: We implement measurable covenants tied to collateral quality and cash generation—with frequent reporting.
• Collateral volatility: We underwrite to conservative advance rates, monitor performance data, and require early‑warning triggers.

LightBrook focuses on asset‑backed and specialty finance opportunities where documentation, data, and collateral mechanics provide multiple avenues of downside protection. Our objective is straightforward: dependable, cycle‑tested returns with rigorous risk control.