When I started exploring private credit, one thing stood out: you don’t have to rely on Wall Street to earn steady returns. This realization opened up a world of options I hadn’t considered before, especially when it comes to how you can invest.

Private credit isn’t a one-size-fits-all strategy. There are three main ways to get involved, each with its own advantages. The first is through publicly traded Business Development Companies (BDCs). These companies lend to middle-market businesses and distribute most of their income as dividends. With yields often reaching 11-12%, it’s a liquid and accessible option.

But like anything tied to the stock market, BDCs can be impacted by sentiment. Even if their loans perform well, their stock prices might fluctuate. Still, for those who want flexibility, BDCs are a solid starting point.

Then there’s the second option: private credit funds. These are pooled investments, typically available to accredited investors, that offer higher yields and less correlation to market swings. These funds often lock up capital for 5-10 years, but they focus on long-term opportunities with higher returns.

This is where private credit starts to feel like a true alternative to traditional investments. It’s about focusing on stability and yield without the noise of daily market movements.

The third way is the most hands-on: originating private loans yourself. For investors with the experience and capital to manage it, this offers the most control and potentially the highest returns. You can set your terms, build relationships with borrowers, and keep intermediaries out of the equation.

Each of these options offers a unique path into private credit. Whether you value liquidity, yield, or control, there’s a way to make it work for your goals.

What struck me most is the flexibility. It’s not just about chasing returns; it’s about finding the strategy that fits your needs. Private credit is an opportunity to rethink how you invest—and who you invest for.