A high net worth investor explains why private money lending beats equity stakes in uncertain markets. Debt instruments offer more predictable returns when the economy feels shaky.
There's a lot of very high net worth investors and they're putting all their money into debt instruments. What does that mean to you? That means private money lending. That means the new fund that we're getting ready to launch. It's debt that is giving you a predictable and reliable return for the money that you're putting in. And it's backed by something, real estate, businesses, whatever it might be. And they prefer that debt because they don't want to hope for the upside of equity, which is where most high net worth investors will do. They'll do a little bit of debt, they'll do a little bit of equity and they're just like, no, I don't want to do that equity right now. You know, I don't, I don't know if I like the market. I don't know. I just don't know. I'd rather work with the team that says this is what you're getting and the rest of the risk is on us and we're the operators and we have to figure out how, how the investment is going to perform and if, if and how we get paid. That is one big, big, big tip for 2024.
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