‘You Don’t Need It': Wealth Advisers Field Private Credit Calls

George Hines, the founder of a chain of music stores, invested in private credit funds for the juicy yields.

These funds pay out much more income than a plain-vanilla bond investment—often about 9% a year. The catch is that they hold privately arranged loans that could be hard to sell in a hurry, so investors have to accept limits on when they can redeem them and for how much.

Late last year, investors started getting nervous about private credit, and Hines, 70, was one of them. He was able to take more than $1 million out of one of Blue ...