Private Credit Rate of Return Calculator

Private credit has returned 10-14% annually vs. 6-8% for public high yield. With $1.7T AUM globally, private credit now rivals traditional banking. Calculate your expected yield.

Quick Estimate

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Detailed Analysis

Full scenario with tax and fees.

10-Year Wealth Projection

Long-term wealth accumulation model.

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Frequently Asked Questions

What returns can you expect from private credit in 2026?
Private credit returns 2026: Direct lending (senior secured): 10-13% gross return; SOFR+500-800bps current; minimum investment: $250K-1M typical; BDCs (Business Development Companies): publicly traded, retail accessible; top BDCs: ARCC (Ares Capital) yield 9.8%; ORCC (Blue Owl) yield 10.2%; OBDC2 11%; FSK (FS KKR) 12.3%; CLO Equity: 15-20% return, complex structure, $500K+ minimum; Mezzanine debt: 13-18% with equity kicker warrants; Private real estate credit: 9-13%, asset-backed, lower default risk; Key metrics to evaluate: weighted average yield; non-accrual rate (problem loans); NAV discount/premium; leverage ratio (target 1.0-1.5x); DSCR on loan book.
What is the minimum investment for private credit funds?
Private credit minimum investments: Mass affluent ($1-5M investable assets): BDCs — no minimum (trade on NYSE like stocks); Public credit interval funds: $10K-25K minimum (Cliffwater Corporate Lending, CCLFX); Accredited investor ($1M+ net worth): Private credit SMA (Separately Managed Account): $250K-1M; Direct lending interval funds: $25K-100K minimum; Qualified Purchaser ($5M+ investable): Institutional direct lending funds (Ares, Golub, KKR Credit): $1M-5M; Family office co-investment: $500K-2M per deal; True institutional: Apollo, Blackstone Credit, HPS — $10M+ minimum; Liquidity profile: BDCs: daily liquidity; Interval funds: quarterly liquidity (5-25% of NAV); Private funds: 5-7 year lockup typical; Secondary market liquidity: Arca, Yieldstreet secondary marketplace.
When should I work with a family office vs. private bank?
Family offices (single or multi) make sense at $50M+ in investable assets. Below that, private banking (JP Morgan Private Bank, Goldman Sachs PWM, UBS) offers similar services with lower minimums ($5-25M). Family offices provide consolidated reporting, direct deal access, and custom investment mandates unavailable at private banks. Multi-family offices (Bessemer Trust, Glenmede) offer a middle ground at $10M+ with family-office-level service at lower cost.
How much should ultra-high-net-worth individuals keep in cash?
Most wealth advisors recommend 3-5% of liquid net worth in cash/cash equivalents for UHNW individuals — enough to cover 12-24 months of lifestyle expenses plus opportunistic investments. Excess cash above this benchmark costs 5-8% annually in opportunity cost vs. diversified portfolios. Treasury bills, money market funds, and short-duration bonds provide liquidity with yield while maintaining capital preservation objectives.

Private Credit Rate of Return Calculator — 2026 Guide

Private credit has returned 10-14% annually vs. 6-8% for public high yield. With $1.7T AUM globally, private credit now rivals traditional banking. Calculate your expected yield. Sophisticated wealth planning requires understanding the interplay of investment returns, tax efficiency, legal structure, and generational transfer. High-net-worth individuals who work with dedicated wealth advisors typically outperform self-managed portfolios by 1-3% annually after fees — a significant difference at scale.

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