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ETMarkets AIF Talk| Successful private credit rests on three pillars: promoter, business and collateral: Sandeep Agarwal
Economic Times 15 hrs ago·6 Aug 2026, 2:33 am
In a recent discussion, Sandeep Agarwal, CEO of Modulus Alternatives, highlighted that successful private credit investing relies on three key pillars: the promoter, the underlying business, and the collateral. He emphasized that investors should not simply chase high yields but instead focus on the quality of the borrower and the safety of the assets backing the loan. This approach helps mitigate risks associated with the illiquid nature of private credit markets.
For investors, this means that thorough due diligence is essential. Understanding the promoter's track record and the business's financial health is crucial to ensuring that the investment is secure. Agarwal's insights suggest that a cautious and selective approach is more effective than a broad, yield-focused strategy in this asset class.
Moving forward, investors should watch for how private credit funds manage their portfolios. A focus on high-quality collateral and strong business fundamentals could signal a more stable investment environment. Keeping an eye on these factors will help investors make more informed decisions in the private credit space.
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