The private credit firm has seen a surge in assets, reflecting demand for this asset class.

Glide Capital, the Miami, Florida-based private credit investment firm working with wealth managers, announced a surge in assets during 2016 to $85 million from $10 million, seeing further gains in 2017 as demand for the asset class continues to be strong.

The firm expanded the number of approved funds it works with to 16 from seven (it screened more than 240 firms within private credit strategies). 

The firm creates separate diversified portfolios for each wealth manager; profits are paid to investors on a quarterly basis and Glide’s target returns are broadly 8-11 per cent per year, based on concentration of investments and liquidity, it said in an update on results.

Involvement in private credit by firms such as Glide, acting on behalf of wealthy individuals and advisors, is taking place at a time when there is hunger for consistent returns in a low-yield environment in the
US, and elsewhere. This demand is driving private capital in general (private equity, private credit, private real estate and infrastructure, etc). At conferences and from commentaries, this publication has been aware of how private credit is expanding rapidly, sometimes driven by family offices, private banks and RIAs. A number of firms have moved into the private credit space recently, such as Firebreak Capital (see an interview here) and BroadRiver Asset Management (see here).