Looking ahead to 2025

Using P/E ratios as a market gauge is smart thinking, and your instinct to diversify is even smarter. Private credit has emerged as an increasingly attractive option, with the market growing to approximately $1.5 trillion at the start of 2024.
The NMG Income Fund’s 10% annual return, distributed quarterly, might catch your eye – and for good reason. But here’s what you should know about private credit investments in general: they typically offer higher yields because they provide financing to companies that might be too large or risky for traditional banks, but too small for public markets. Think of it as filling a crucial gap in the lending landscape.
Before jumping in, though, consider the full picture. Private credit investments often require a longer commitment of your money – they’re less liquid than stocks or bonds. The higher returns come with their own set of risks, including the need for careful assessment of borrower credit quality, loan terms, and collateral evaluation.
Looking ahead to 2025, private credit is expected to continue growing with new assets and structures emerging. If you’re considering adding private credit to your portfolio through funds like NMG, treat it as one piece of a broader diversification strategy. Just like you wouldn’t put all your eggs in the stock market basket, you’ll want to maintain a balanced approach with private credit as well.