Why Capital Protection Matters Now
Bonds were once a cornerstone of conservative portfolios. Today, they leave many investors with losses in real terms. Equities, meanwhile, continue to swing on central bank moves, geopolitical risk, and shifting market sentiment. The old diversification playbook no longer delivers the protection it once promised.
For professional investors, family offices, and advisers, capital protection is once again the priority. The challenge is where to find it. Increasingly, sophisticated investors are looking towards structured private credit, opportunities that provide fixed, predictable returns, secured against assets and insulated from public market volatility.
WIUS Capital specialises in this space. Our focus is on asset-backed private credit designed not only to deliver income but, first and foremost, to protect capital.
Market Context: Why Private Credit Matters Today
Private credit has emerged as one of the fastest-growing areas of global finance. Once a niche alternative, it has now become a $1.6 trillion market, projected to exceed $3 trillion by 2028 . The drivers are clear:
- Bank retrenchment since 2008: As banks pulled back from mid-market lending, private investors filled the gap.
- Institutional adoption: Pension funds, insurers, and sovereign wealth funds increasingly allocate to private credit for yield and diversification.
- Predictability: Private credit provides contractual pay-outs, often fixed or floating, with defined maturities.
In contrast to public markets, where sentiment drives prices, private credit is grounded in legal agreements and collateral. This distinction explains why investors seeking stability are allocating capital away from bonds and equities towards structured credit opportunities.
The Problem with Public Markets
Bonds are underperforming
Even as interest rates rose, many bond portfolios failed to deliver real returns. Inflation eroded purchasing power, leaving investors with negative real yields. The long-held assumption that bonds guarantee stability has been shaken.
Equities are volatile
Equity markets remain subject to cycles and shocks. From trade tensions to rate hikes, macro events dictate valuations. For investors who require predictable income streams, volatility undermines confidence.
Diversification is failing
For decades, a 60/40 stock-bond split was considered the foundation of a resilient portfolio. Yet in recent years, equities and bonds have often moved in the same direction, leaving investors exposed to correlated risks.
The Solution: Structured Private Credit
Private credit provides a disciplined alternative:
- Uncorrelated, predictable returns – returns are determined by contracts, not market sentiment.
- Asset security – loans are backed by collateral, assignment rights, or insurance.
- Clarity of terms – maturities and coupon structures are defined upfront.
At WIUS, we focus on asset-backed opportunities in litigation funding and commodities. These are chosen not because they offer the highest yield, but because they can be structured to protect principal.
Litigation-backed credit
Litigation finance uses capital to fund legal claims, in return for fixed returns. Unlike traditional litigation funds that bet on a few high-value disputes, newer models spread capital across thousands of smaller claims, each backed by After the Event (ATE) insurance. This diversification reduces risk and creates predictable cash flow.
Commodities-linked financing
Structured lending against physical commodities, with custody and enforceable contracts, creates a secured position for investors. Even if a counterparty fails, collateral can be sold to recover capital.
How WIUS Structures Opportunities
Rigorous due diligence
Every opportunity is vetted extensively:
- Litigation: assessment of case strength, enforceability, collateralisation, and insurance coverage.
- Commodities: review of counterparties, asset custody, security interests, and enforceable contracts.
Collateral + structure
We place security above yield. By structuring credit with collateral rights, insurance, and assignment clauses, we prioritise capital protection.
Fixed-return terms
Opportunities are structured with defined maturities and fixed coupons. These are designed for professional investors who seek certainty and predictable outcomes.
Exclusivity by design
WIUS secures mandates normally reserved for institutions. These opportunities are not available in retail markets. We also co-invest alongside clients, aligning our success directly with theirs.
Comparative Analysis: Why Investors Are Reallocating
Asset Class | Volatility | Liquidity | Return Predictability | Downside Protection |
Bonds | Moderate | High | Weak in inflationary cycles | Low |
Equities | High | High | Unpredictable | Low |
Private Credit (asset-backed) | Low-Moderate | Low-Moderate | High | High (via structure) |
This table illustrates why private credit is gaining favour. It does not replace equities or bonds but adds a stabilising component to portfolios.
Investor Use Cases & Scenarios
- Case A (Litigation Funding): During an equity market sell-off, a litigation-backed note continued to pay quarterly coupons. Outcomes of claims were unaffected by stock volatility, highlighting its non-correlated nature.
- Case B (Commodities Financing): In one instance, a counterparty defaulted, but because the loan was secured against stored physical commodities, the collateral was liquidated to repay investors in full. This demonstrates how structured security preserves capital even under stress.
These examples underline that capital first, returns second is more than a principle, it is a tested approach.
Why Investors Choose WIUS
- Capital protection first: WIUS prioritises principal security, with yield as a secondary layer.
- Alignment: We co-invest alongside clients, ensuring our capital is at risk on the same terms.
- Exclusivity: Our mandates are designed for family offices, high-net-worth individuals, and institutions who demand certainty and access beyond retail markets.
- Track record: The models we work with such as litigation-backed credit with ATE insurance have demonstrated consistency and reliability.
Want to understand how WIUS protects investor capital while delivering fixed returns?
Frequently Asked Questions
1. How does private credit protect investor capital?
Through collateral rights, enforceable contracts, and insurance. These structures mean investors are not relying solely on counterparty performance.
2. Why is private credit less volatile than equities or bonds?
Returns are determined by contracts and collateral, not daily market sentiment. This reduces volatility and correlation.
3. What types of asset-backed opportunities does WIUS focus on?
Litigation-backed notes and commodities financing, both with built-in protections.
4. Who can invest in WIUS opportunities?
Professional, high-net-worth, sophisticated, and institutional investors only. These are not retail products.
5. How does WIUS differ from others?
Exclusivity, co-investment, and structures that prioritise capital protection above all.
Disclaimer
This content is for general information only and does not constitute investment advice or a recommendation. All investments involve risk, and your capital is at risk. Opportunities discussed are intended for professional, high net worth, sophisticated and institutional investors only. Private market investments can be illiquid and complex, and you could lose all invested capital.
Written by Mark Boyes
Co-Founder, WIUS Capital
With over 15 years of experience in international financial services, Mark has managed and advised on assets exceeding $100 million across five continents. He has held directorships at two leading international financial advisory firms and built a strong reputation for delivering results in competitive markets. At WIUS Capital, Mark focuses on structuring litigation-backed and asset-secured private credit opportunities for professional investors worldwide, alongside advising private companies on capital raising and sustainable growth. Known for his transparency and strategic mindset, he is committed to helping investors and businesses secure long-term results.
Meet the Founders https://wiuscapital.com/meet-the-founders/
