Everyday lending.
EDITION 07: INVEST ON PURPOSE
Did you know…
The Statue of Liberty was partially funded through private credit and donations? In the 1880s, the project to build the pedestal for Lady Liberty ran out of money. Enter Joseph Pulitzer (yes, that Pulitzer), who launched a passionate fundraising campaign in his newspaper, New York World. His rallying cry: “Let us not wait for the millionaires to give us this money.” Small private loans and contributions poured in from individuals across the United States, proving that collective financing could bring an iconic vision to life.
Fast-forward to today, and private credit continues to quietly transform the financial landscape. Chances are, you’ve already participated in this asset class without even realizing it.
Think about it: ever taken part in a crowdfunding campaign for a small business? Or perhaps invested in a real estate platform that funds local developments? Those are forms of private credit—where individuals or organizations provide loans directly, bypassing traditional banks. Yet most people, especially women, are unaware of the investment opportunities this space holds.
Let’s dig in to understand private credit and why it matters.
Imagine this…
You’re part of a community where a local café needs funding to expand. Instead of the owner going to a bank, she offers you (and a few others) an opportunity to loan her the money. In return, she agrees to pay you back with interest. The café thrives, you earn a return on your investment, and the community gains a beloved new hangout spot.
Whether it’s a café, a clean energy company, or a real estate development, private credit is an investment that doesn’t just sit in the stock market—it’s tangible, community-driven, and can generate consistent returns over time.
Welcome to private credit.
Private credit is a form of alternative investment where individuals (or funds) lend directly to businesses. Unlike public markets (stocks and bonds), private credit investments are often structured to fit the specific needs of the borrower, such as funding a new project, managing cash flow, or expanding operations.
Private credit was long considered only for institutional investors and ultra-high-net-worth individuals. Times are changing, though, and platforms are emerging to make this asset class more accessible to individuals like you and me.
And as mentioned earlier, you might have already participated in this space without knowing it. So, what if we leaned into this asset class more intentionally?
Why private credit matters for you and your community. Private credit offers more than just diversification and potential returns:
Support local businesses. Want to see your community thrive? Private credit often channels funding to small and medium businesses, real estate projects, and other ventures that banks might overlook.
Earn steady returns. Unlike public market investments that can fluctuate with the daily news cycle, private credit typically offers stable, predictable returns through interest payments.
Dip your toe into private markets. Private credit is an excellent entry point into the world of alternative investments, giving you a taste of private market returns without the same long lock-up periods as private equity or venture capital.
Why women, in particular, need to pay attention. The private credit market has been one of the fastest-growing segments of the financial system over the past 15 years, now worth over $2 trillion globally. But, research shows that women are underrepresented in these alternative investments. We’re leaving a lot of our money in no- or low-interest accounts. Yet, we’re often natural community investors—already supporting local businesses or causes in informal ways. By stepping into private credit intentionally, we can formalize those efforts, grow our wealth, and amplify our impact.
How to apply this…
Over the next few months, we are focusing on building a platform to help women access and understand private credit opportunities. Our goal? To empower all of us to diversify our portfolios, invest with purpose, and unlock new avenues of financial growth.
As we embark on this journey, alongside you, consider the areas of your community you’d love to invest in. Think about your entire investment portfolio and how this asset class could fit in. Reflect on what you would need to feel confident about moving forward.
Drop a comment and let us know—we’d love to hear your ideas and your questions.
In summary…
Private credit offers a unique opportunity to earn returns while supporting the businesses and communities that matter most to you. It’s not just about growing your wealth—it’s about investing in a way that supports your values and goals.
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Sources
https://www.nps.gov/stli/learn/historyculture/joseph-pulitzer.htm
https://www.investopedia.com/private-credit-vs-private-equity-7565530#toc-private-credit
https://www.mckinsey.com/industries/private-capital/our-insights/the-next-era-of-private-credit
