Private Credit Firms Push New Funds to Tap Retiree Money (1)

Private credit firms are preparing to reach everyday investors in the US by launching new vehicles that are more compatible with 401(k)s and other retirement accounts.

Managers last year launched 41 evergreen funds dedicated to private credit, according to data from Preqin. These vehicles are designed to offer individual investors options to cash out periodically, in contrast with some closed-end vehicles that typically catered to institutional buyers and locked up capital for a set amount of time.

The new funds come on the heels of President Donald Trump’s executive order last year designed to open up 401(k)s to assets ...