Invest in
Private Credit
Get started nowTransform Private Credit into Real Returns
Access to Structured Operations
Hurst selects credit operations with tangible returns and rigorous risk analysis, prioritizing risk control and predictability in returns.
Returns Exceeding Traditional Fixed Income
Private credit offers more attractive returns than public bonds, with risk-adjusted compensation and more tailored opportunities.
Portfolio Diversification with Risk Control
Incorporating private credit into a portfolio helps balance exposure across different asset classes, offering moderate risk and significant gain potential.
Low Volatility
As it does not rely on daily market quotations, private credit exhibits more stable behavior, making it ideal for long-term strategies.
What is Private Credit?
Private credit is an investment vehicle where investors lend money to private sector companies by purchasing debt securities, such as debentures, CRs (Receivables Certificates), and CCBs (Bank Credit Bills). In return, investors receive interest payments and, at the end of the term, the invested principal back.
These securities are issued by companies seeking to finance their operations, expand projects, or even contribute to the business's working capital. While financing and contributing to working capital may seem similar, they are legally distinct operations — and, in many cases, the investor is directly contributing to this essential capital for the company's operation.
This type of investment has gained prominence due to its combination of superior returns and controlled risk, especially when selected by specialized firms like Hurst. This is because investing in private credit allows for portfolio diversification with assets that offer predictable cash flow and lower volatility compared to variable income, making it an attractive option for those seeking stability as well as those desiring above-average returns from traditional fixed income.
How Does It Work?
Investing in private credit entails allocating capital into debt securities issued by private sector companies, with the objective of achieving superior returns compared to traditional fixed income, while maintaining a high level of predictability and risk control. This type of investment may include debentures, CRs, and other structured instruments that offer periodic interest payments and the return of invested capital at maturity. The operation of private credit can be understood through two central pillars:
Investment Thesis
This represents the strategic rationale behind private credit allocation. By financing and fostering working capital through well-structured securities, investors aim to capture more attractive returns with lower volatility. Furthermore, the selection of operations with tangible results, reputable issuers, and defined terms strengthens the potential for consistent income generation and the conservative profile of the investment.
Technology Framework
This refers to the process of selecting, analyzing, and monitoring operations. Hurst identifies reliable issuers, negotiates favorable terms, and structures contracts with the potential for robust returns and investor protection clauses. This framework encompasses credit analysis, payment flow management, and the legal and financial oversight of operations, thereby offering enhanced risk control and transparency for investors.
Key Advantages of Investing in Private Credit:
Superior Returns Compared to Traditional Fixed Income
Private credit instruments typically offer higher interest rates than public investments, thereby enhancing portfolio return potential.
Predictability of Cash Flows
Private credit features defined schedules for interest payments and amortizations, which facilitates investors' financial planning.
Access to Productive Sectors of the Economy
By investing in private credit, you foster the working capital of real businesses that generate employment and drive strategic sectors such as infrastructure.
Low Volatility
Private credit instruments exhibit lower price volatility in the short term, making them ideal for more conservative profiles or stability-oriented strategies.
Risks of Investing in Private Credit
Concentration Risk
Investing in a limited number of issuers or sectors reduces diversification and amplifies the impact of any specific issue on the portfolio.
Liquidity Risk
Private credit instruments may experience low liquidity in the secondary market, making it challenging to sell them before maturity at fair prices.
Valuation Risk
As many credit assets are not traded on exchanges, their mark-to-market valuation may be less transparent, complicating the assessment of their true value.
Mitigation: To mitigate this risk, Hurst employs a team of specialists who conduct rigorous asset analyses, ensuring a meticulous and well-founded valuation. Furthermore, the legal department provides a highly qualified and analytical perspective on the operational structure.
Structuring Risk
Poorly structured instruments, characterized by weak clauses or insufficient contractual protection, heighten investor vulnerability in adverse situations.
Mitigation: Hurst also strategically addresses this risk with experienced specialists in contract analysis and legal structuring, thereby ensuring greater robustness and protection for investors.
Learn More About Investing in Private Credit
Brazil possesses a robust market often overlooked by the majority — and investing in private credit is key to accessing opportunities with high returns and controlled risk. Do you wish to understand its mechanics and why this investment type is gaining traction in the most strategic portfolios? In the adjacent video, we provide a simple, direct, and practical explanation.
Press play and begin investing with confidence.
Transparency and control at your fingertips
Monitor your investments in real-time, access documents and reports, and initiate new investments directly via the Hurst Capital application.
Download our App now
