Introduction: A Volatile Start to 2025
Global investors have entered 2025 with little confidence in traditional asset classes. Public equity markets continue to swing on political uncertainty, global conflicts, and uneven growth forecasts. Fixed income, once a reliable anchor, has failed to provide consistent real returns as inflation and interest rates remain unsettled.
In this climate, experienced investors are looking beyond the traditional 60/40 portfolio. Private credit investment, particularly when structured with asset-backing, is one of the few areas offering defined returns with a strong emphasis on capital protection.
For professional investors, family offices, and institutions, the question is not whether to consider private credit, but how to approach it in a way that protects wealth while maintaining stable income potential.
What Private Credit Is and What It Is Not
At its core, private credit is debt financing provided by non-bank entities. Instead of borrowing from traditional banks, businesses raise capital directly from investors through structured private notes. These agreements set out fixed repayment terms and interest, often with collateral attached.
It is not speculative equity. Nor is it retail lending. Properly structured private credit sits between public debt markets and private equity. It offers:
- Contractual returns tied to loan terms.
- Defined time horizons with clear repayment dates.
- Collateralisation or insurance that protects principal.
The global private credit market has grown into a multi-trillion-dollar asset class, reflecting investor demand for alternative sources of yield and diversification.
Why Asset-Backing Matters in 2025
Not all private credit is equal. The key differentiator lies in whether the investment is asset-backed.
Asset-backed private credit ties investor capital to tangible or contractual security, which may include:
- Real estate or infrastructure assets.
- Trade finance receivables.
- Commodities or inventory.
- Insured legal claims.
This structure does two things:
- Reduces default risk. If the borrower fails, investors retain recourse to assets with measurable value.
- Provides predictable outcomes. Returns are less reliant on market sentiment and more grounded in contractual obligations.
In an environment where volatility undermines listed markets, the ability to secure investments against real assets is one of the clearest ways to protect wealth.
Market Trends: Private Credit vs Bonds and Equities
Traditional fixed income has been a disappointment. While yields have risen in nominal terms, inflation continues to erode real returns. Many government bonds remain negative in real yield terms, leaving investors holding duration risk without adequate compensation.
Equities, meanwhile, remain driven by macro shocks and sector rotations, producing inconsistent returns. Correlation across global markets has increased, reducing diversification benefits.
Private credit, particularly when asset-backed, offers a compelling counterpoint:
- Stable returns. Fixed rates of 8–14% p.a. across different structures.
- Low correlation. Returns are linked to borrower repayment and collateral, not market indices.
- Diversification. Access to sectors uncorrelated with listed markets, such as litigation claims or commodity trade finance.
Institutional investors have been reallocating accordingly. The asset class has grown rapidly, with family offices increasingly viewing private credit as a strategic portfolio allocation, not a peripheral opportunity.
Case Studies: Litigation vs Commodity-Backed Private Credit:
Litigation-Backed Private Credit
Litigation funding provides capital to law firms pursuing claims, in return for fixed repayment plus interest. Modern models spread capital across thousands of small-value cases, from housing disrepair to financial mis-selling, each supported by After-the-Event (ATE) insurance.
Investor protections include:
- Insurance coverage that pays if claims fail.
- Diversification across thousands of cases.
- Short cycles (6–24 months).
- Legal assignment rights to recover costs if law firms default.
Track record:
- Over 296,000 cases funded with no defaults to date.
- Fixed annual returns of 11–12% paid quarterly.
For investors, this represents a contractual income stream backed by insurance, with very low correlation to equity or bond markets.
Commodity-Backed Private Credit
Commodity-backed structures provide investors with exposure to secured notes tied to physical goods. For example, a loan note may be secured against gold, energy assets, or agricultural produce held in storage.
Key features:
- Tangible collateral with measurable liquidation value.
- Inflation hedge due to linkage with commodity prices.
- Defined exit terms on maturity.
This structure has particular appeal in inflationary environments, where physical commodities retain or grow value while fiat currency erodes.
Together, these two examples illustrate the diversity of asset-backed private credit. One is secured through legal insurance and case diversification, the other through hard collateral. Both aim to protect investor capital while providing predictable income.
Risk Management in Private Credit
Private credit is not risk-free. Sophisticated investors evaluate structures carefully, looking at:
- Default and credit risk. How robust is the borrower or underlying business?
- Collateral quality. What assets secure the investment, and how quickly can they be realised?
- Insurance and guarantees. Is capital protection contractual or discretionary?
- Liquidity. Can investors exit early, or must they hold to maturity?
- Regulatory oversight. Are structures compliant with relevant jurisdictions?
At WIUS, we emphasise rigorous due diligence. Each opportunity undergoes full stress testing on collateral value, borrower risk, and downside scenarios before being considered. Only a small fraction of reviewed opportunities are ever introduced to clients.
WIUS Capital Advantage: Access That Others Cannot Offer
WIUS Capital is not a bank or a mass-market wealth manager. We specialise in securing exclusive mandates for asset-backed private credit investment opportunities that are typically unavailable outside institutional circles.
Our approach is defined by:
- Selectivity. Only a handful of opportunities each year, not a crowded marketplace.
- Alignment. We co-invest alongside clients, committing our own capital.
- Access. Through our networks, we negotiate lower entry levels and flexible terms.
- Transparency. Clear structures, fixed returns, and contractual protections.
While competitors position themselves as alternative asset managers offering broad exposure, WIUS remains tightly focused on asset-backed, risk-managed credit opportunities. This exclusivity ensures our investors are not simply buying another product, but entering opportunities usually closed to them.
Why 2025 Is the Year for Asset-Backed Private Credit
As 2025 unfolds, the themes are clear:
- Public markets remain uncertain.
- Bonds offer limited real return.
- Inflation and geopolitical risks persist.
Against this backdrop, investors are seeking stability. Asset-backed private credit offers:
- Capital protection through collateral or insurance.
- Defined returns with fixed terms.
- Low correlation with volatile markets.
- Exclusive access when sourced through the right channels.
It is this combination of protection, predictability, and access that sets private credit apart as a genuine allocation strategy this year.
Frequently Asked Questions
1. How is private credit different from bonds?
Bonds are publicly traded and highly sensitive to interest rate changes. Private credit is negotiated directly, with fixed terms and often asset-backing that reduces reliance on market movements.
2. Is private credit suitable for all investors?
No. These opportunities are designed only for professional, high-net-worth, sophisticated, and institutional investors. They are illiquid, complex, and require an appropriate risk tolerance.
3. What assets typically back WIUS private credit opportunities?
Structures may be secured against litigation portfolios (with ATE insurance), commodities, or real estate. Each opportunity varies, but asset-backing is central to our approach.
4. How liquid are these investments?
Most structures run on 2–5 year terms. While some offer interim coupon payments, early exit is often limited. Investors should be prepared to hold until maturity.
5. What are the typical returns?
Opportunities vary, but many range between 8–14% per annum, depending on structure and term length. Returns are contractual but not guaranteed.
6. How does WIUS protect investors?
We carry out full due diligence, secure exclusive mandates, and co-invest alongside clients. This ensures alignment and rigorous structuring.
If you are a professional, high-net-worth, or institutional investor seeking to explore asset-backed private credit in 2025, WIUS Capital can provide access to opportunities designed to protect capital and deliver predictable outcomes.
You can download our Investor Pack and learn more about The WIUS Advantage by clicking the button below.
Book A Private Consultation
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 Ben Gilbert
Co-Founder, WIUS Capital
Ben is a serial entrepreneur with more than 20 years of experience founding and scaling companies across telecoms, energy, and agritech. He has raised over $500 million for projects spanning five continents and developed innovative technology to solve challenges in renewable energy and agriculture. At WIUS Capital, Ben brings his global business development expertise and hands-on approach to structuring exclusive private credit opportunities and supporting companies in accessing strategic growth capital. Recognised for his integrity and innovation, Ben continues to build long-term relationships that deliver meaningful results for investors and businesses alike.
Meet the Founders: https://wiuscapital.com/meet-the-founders/
