Five Reasons Retail Should Be Wary of Private Credit (Especially Retirement Plans)

Aptus Capital Advisors

Brian Jacobs

Research

7 Pages

Brian Jacobs explains why many private credit strategies are poorly suited for retail investors, especially retirement plans. He contrasts collateral rich lending with opaque, lightly secured funds and note private credit assets now exceed $1.7 trillion.

Date published: November 21, 2025

Key Takeaways

Retail complexity risk: Private credit structures are opaque, negotiated privately and often misunderstood by savers expecting simple transparent bond funds.
Liquidity and pricing: Illiquid loans lack real time pricing, so smooth NAVs can hide abrupt markdowns when valuations finally reset.
Incentives and timing: Fee driven managers and sponsors push complex products into default retirement menus just as credit conditions appear late cycle.
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