No Result
View All Result
Global Finances Daily
  • Alternative Investments
  • Crypto
  • Financial Markets
  • Investments
  • Lifestyle
  • Protection
  • Retirement
  • Savings
  • Work & Careers
No Result
View All Result
  • Alternative Investments
  • Crypto
  • Financial Markets
  • Investments
  • Lifestyle
  • Protection
  • Retirement
  • Savings
  • Work & Careers
  • Login
Global Finances Daily
No Result
View All Result
Home Alternative Investments

The role of private credit in a diversified HNW portfolio: Spotlight on bridging loans

June 21, 2025
in Alternative Investments
0
Somo - Louis Alexander


As high-net-worth investors (HNWIs) around the world increasingly seek out alternatives to volatile public markets and low-yielding cash deposits, private credit — particularly bridging loans — is emerging as a strategic asset class of interest. Once overlooked or misunderstood, bridging loans are now gaining traction among wealth managers and HNWIs as a low-duration, asset-backed investment that delivers attractive risk-adjusted returns.

The growth of private credit

Typically secured against UK property, bridging loans offer capital preservation and strong yields, with annualised returns in the range of between 8-12 per cent. For instance, Somo currently offers returns of up to 13.2 per cent per annum and the platform has averaged an annual return of 10.99 per cent since its 2014 inception. This is in contrast to traditional fixed income products, which averaged 3.6 per cent in 2023 (Bloomberg Global Aggregate Index). With repayment timelines generally within 12 months, bridging loans also provide liquidity without the long lock-up periods of private equity or infrastructure funds.

Evolving investor attitudes are evident in investment flows. According to Preqin, global allocations to private credit hit a record $1.6tn (£1.2tn) in 2024, with HNW and family office interest accounting for a growing share. In the UK, Somo has seen a 40 per cent rise in investor enquiries since 2022, indicating increasing comfort with this once-niche asset class and the firm’s founder and chief executive Louis Alexander (pictured) takes heart from this progress.

“The appetite we’re seeing from HNW investors is a very interesting development,” says Louis. “One of the key characteristics that differentiates HNW investors from retail investors is the fact the latter is much stickier – they do their research, speak to peers, weigh up historical risk and reward and that means once commitments are made to certain asset classes, they stay.

“HNW allocations are often overseen by family offices and investment committees so if they have decided to engage with private credit, it’s a sign they’ve given it serious consideration and want it to feature as part of a long-term portfolio.”

Private credit’s learning curve

However, private credit is still a relatively new asset class for many HNW investors and so misconceptions persist. Many still conflate bridging loans with subprime lending or assume high default risk. In reality, reputable lenders operate with rigorous underwriting, low LTVs, and zero capital loss track records. For example, Somo has recorded zero capital losses since its inception in 2014 to March 2025, during a period that saw £403m lent via over 2,000 loans.

“This is an asset class where knowledge and experience are king, where robust processes and due diligence are continually strengthened,” explains Somo’s Louis.  “In addition, all our loans are secured against UK property at a maximum loan to value of 70 per cent.

“Transparency, speed of deployment, and tangible security make bridging loans an intelligent component of a well-spread portfolio — especially in uncertain markets.”

Private markets are being increasingly selected over their public counterparts. No returns are ever guaranteed but private credit – and within it, bridging loans – is gradually becoming established as a worthy and legitimate option for HNW portfolios.



Editorial Team

Editorial Team

Related Posts

The International Finance Corporation (IFC) has announced a $50m follow-on investment in Victory Park Capital Investor Fund W.
Alternative Investments

IFC commits $50m to VPC to expand SME financing in emerging markets

July 6, 2025
Outdated systems and processes are creating 'data challenges' that are becoming a 'constant operational hurdle' for private credit firms.
Alternative Investments

Data challenges becoming a ‘constant operational hurdle’ for private credit firms

July 5, 2025
Kartesia raises €1.3bn for credit opportunities fund
Alternative Investments

Kartesia raises €1.3bn for credit opportunities fund

July 5, 2025
Private credit secondaries
Alternative Investments

Rising competition changes market dynamics in private credit secondaries

July 5, 2025
Muted UK deal activity
Alternative Investments

UK debt advisers see muted deal activity

July 4, 2025
Orix USA buys majority stake in Hilco Global
Alternative Investments

Orix USA buys majority stake in Hilco Global

July 4, 2025
Load More
Next Post
Money Marketing Weekly Wrap-Up – 16 Jun to 20 Jun

Money Marketing Weekly Wrap-Up – 16 Jun to 20 Jun

Popular News

  • Josh Garber

    How to Contact Hilton Customer Service

    0 shares
    Share 0 Tweet 0
  • Air Tahiti Nui 787-9 Premium Economy Review

    0 shares
    Share 0 Tweet 0
  • Polka-Dot Nails Are Summer’s Sweetest Micro Trend

    0 shares
    Share 0 Tweet 0

Latest News

Ethereum

Ethereum Reserves On Binance Hits 2023 Level — What Happened Last Time?

July 6, 2025
0

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure After a dismal outing in the first...

More choice: Marks & Spencer is launching an assault on traditional supermarkets by expanding its ranges targeted at families

M&S hunts growth with family-sized products

July 6, 2025
0

By EMILY HAWKINS Updated: 16:50 EDT, 6 July 2025 --> --> --> Marks & Spencer is launching an assault on...

Seeking Hookups and Relationships on Work Trips

Seeking Hookups and Relationships on Work Trips

July 6, 2025
0

Online dating makes all of this infinitely easier than ever, but what are the right apps to explore? It depends...

Tony Blair’s staff took part in ‘Gaza Riviera’ project with BCG

Tony Blair’s staff took part in ‘Gaza Riviera’ project with BCG

July 6, 2025
0

The Tony Blair Institute participated in a project to develop a postwar Gaza plan that envisaged kick-starting the enclave’s economy...

Global Finances Daily

Welcome to Global Finances Daily, your go-to source for all things finance. Our mission is to provide our readers with valuable information and insights to help them achieve their financial goals and secure their financial future.

Subscribe

  • About Us
  • Contact
  • Privacy Policy
  • Terms of Use
  • Editorial Process

© 2024 All Rights Reserved - Global Finances Daily.

No Result
View All Result
  • Alternative Investments
  • Crypto
  • Financial Markets
  • Investments
  • Lifestyle
  • Protection
  • Retirement
  • Savings
  • Work & Careers

© 2024 All Rights Reserved - Global Finances Daily.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.