Access up to 10%* p.a. target returns with Private Credit

Private credit loans are typically structured with floating interest rates. That means the interest borrowers pay — and the returns investors earn — adjust based on market rates. So yes, if interest rates fall, part of your return may decrease.

But there’s more to the story: Private credit loans also include something called a credit spread. This is a fixed premium added on top of the base rate to account for the borrower’s credit risk. Even if interest rates drop, the credit spread usually stays the same — helping cushion the impact on your returns.

So while returns may dip slightly in a lower-rate environment, they generally remain attractive because of that stable credit spread.  

1. Verify your Professional Investor (PI) status

Head to your StashAway app or web app to submit your PI verification documents. If you’re already verified, you’re good to go.

2. Access the Private Credit portfolio

Once verified, you’ll be able to view fund-level details, including factsheets and invest directly from the app.

3. Make a deposit

Follow the instructions in the app to make a subscription.

There is no maximum number of subscriptions you can make. After your initial investment, you’re free to make additional subscriptions at any time, with no new lock-up period applied, subject to a minimum deposit amount.

Just note that redemptions can only be requested once the initial short lock-up period from your first subscription has ended.  

Nothing happens to your investments if StashAway gets acquired, goes public, or closes down. Your funds are received in our client money account, where they are segregated from StashAway’s company account. Your investments will be held by an independent trustee on your behalf. The trustee will continue to safeguard them if the situation were to arise.

Any profits you make from Private Credit investments would be considered capital gains belonging to you. Therefore, you are responsible for all tax consequences, reporting requirements, and payment obligations.

StashAway does not manage tax risks, so we recommend you seek advice from a third party for the tax implications of investing in Private Credit.

Your funds will be invested in an open-ended private credit fund managed by Hamilton Lane. The investments are then held on your behalf by an independent trustee. 

No, the target returns are based on the characteristics of senior secured private credit, which tends to offer stable, contractual income streams due to its position at the top of the seniority structure. Actual returns may vary depending on market conditions, and returns are not guaranteed.

StashAway and Hamilton Lane have a strategic partnership that allows StashAway to leverage Hamilton Lane's institutional expertise and provide its Accredited Investors with simplified access to premier, institutional-grade private market investments.

Unlike traditional bond funds, private credit gives you access to privately negotiated loans that are not traded in public markets. These loans often offer higher yields and risk management due to their collateral and position in the capital structure, such as with senior secured private credit (highest seniority). However, they also typically come with restricted liquidity and lock-up periods compared to public market instruments.

- Higher yield potential: Because private loans are less liquid and use tailor-made contracts, they often pay a premium.

- Risk management through seniority structure: Private credit includes loans that are provided to companies at varying risk levels and therefore provide varying return profiles as well. This is called a seniority structure. Senior secured private loans sit at the top of the capital structure for priority repayment, offering a layer of protection in the rare event of a default.

- Low correlation to public markets: Private credit typically has a low correlation to public markets, which helps diversify your portfolio and reduces overall volatility. Unlike public bonds, private credit instruments are not traded on exchanges and are therefore not marked-to-market daily — this results in smoothed returns that are less affected by short-term market swings.

- Restricted liquidity: Unlike public bond funds, private credit products have traditionally come with multi-year lock-ups starting from 1 year.  

Private credit refers to loans made by non-bank lenders, such as private equity firms, hedge funds, or direct lending platforms, to businesses seeking financing. These loans are not traded on public markets (like bonds), and the terms are negotiated directly between the lender and the borrower. Private credit usually offers for higher interest rates, and can include different types of debt like senior secured loans or mezzanine financing that vary in risk-return profile.

Yes, StashAway has a payout feature in the app for certain portfolios where you can update your portfolio payout preferences (to either receive distributions or reinvest them) directly in the app.

Just go to your portfolio settings, and navigate to ‘payout preference’. Any changes will apply to the next available distribution. By default, the payout preference is set to reinvest distributions.