Beyond yield, advisors and direct contribution (DC) plans look to private credit for diversification and deployment. 

These goals are not unrelated. Quantity over quality, particularly at the higher end of the middle market or the large cap space, can result in chunky portfolio positions. These can add significantly to risk. A default or loss in a higher concentrated borrower can hurt returns, especially in a private credit strategy that delivers consistent income streams. 

It’s a balance. The more investors in a fund, the broader the allocation across those investors, and the less concentrated the positions. As the portfolio grows, every investor you add keeps pace with that target, and allows existing clients to maintain their level of deployment.