Private Credit in Times of Turmoil: Why Diversification Matters More Than Ever

Global investors are on high alert this month as geopolitical instability, volatile public markets and new regulatory developments put fresh pressure on traditional asset classes.

In the US, proposed tax legislation targeting litigation funding has sent shockwaves through the alternative finance space, while tensions in Europe and the Middle East continue to rattle equity markets.

In light of these developments, concentrating capital in a single asset class has never looked riskier. And that’s where private credit, and the Balqis Capital Bond in particular, stand apart.

The Case for Private Credit

Private credit offers access to secured, yield-generating assets that don’t correlate directly with public markets. It provides flexible terms, downside protection and higher returns than traditional fixed income products.

But in a fragmented, rapidly changing world, the key to private credit’s strength is diversification, not only across sectors but across strategies.

The Balqis Capital Bond: A Diversified Solution

The Balqis Capital Bond is a structured product designed for precisely this kind of environment. It provides investors with broad, high-conviction exposure to secured private credit opportunities, without being overconcentrated in any single asset class.

With a 10.25% fixed return, the bond blends performance and security through multiple layers:

• LSE-AIM Listed IPO Participation

Investors gain access to select IPOs on the London Stock Exchange’s AIM market. Acquired at offer price, these positions carry a built-in equity uplift, providing growth potential while maintaining structural protections.

• Regulated Jersey M&A Fund

The bond includes exposure to a special purpose vehicle domiciled in Jersey and managed by a former Goldman Sachs executive. This M&A vehicle seeks deal-driven returns from mid-cap acquisition activity, an area traditionally dominated by institutional players.

• Broader Diversification

In addition to equity-linked opportunities, the Balqis Bond offers exposure to litigation finance, private debt and structured equity, each secured with asset-backed protections and structured with multiple layers of risk control.

As legislative proposals like the U.S. tax on litigation funding demonstrate, overexposure to any single sector, no matter how attractive, can leave portfolios vulnerable. The Balqis approach is to offer access to these sectors while mitigating downside through diversified deployment and expert oversight.

Why It Matters Now

Uncertainty tends to drive capital toward safety. But safety today isn’t found in passive instruments or public markets, it’s in carefully structured, actively managed strategies with defensible collateral and clear exits.

Mary Trimithiotou, Chief Financial Officer at Balqis Capital, said: “We’ve built the Balqis Bond to withstand the pressures of today’s market. With built-in diversification, institutional-grade deal access and structured returns, it’s a solution for those who understand that volatility is the new normal.”

A Product Perfect for the Current Cycle

The bond is designed for private clients, family offices and wealth advisers who want:

• Access to alternative yield with defensible structures
• Transparency into underlying assets and counterparties
• Diversified exposure beyond property or single-strategy debt
• And crucially, a product aligned with a risk-aware, global view.

Global unrest, political posturing and sudden shifts in regulation are not one-off events, they’re characteristics of the current investing cycle. In this environment, the ability to spread capital across secured, diversified strategies is not just a strength, it’s a necessity.

The Balqis Capital Bond was created with that in mind. To learn more about the bond or to access all documentation and due diligence, contact us.