Hedge Funds Dive into Private Credit: What This Means for Investors

Millennium, Point72 and Third Point – three of the world’s most influential hedge funds – are now building out major private credit arms. This surge marks a pivotal shift in global capital flows and signals the start of a new, more competitive chapter for the $1.7 trillion asset class.

But as fast money rushes in, experienced investors and advisers should pause to ask: what happens next?

This influx brings opportunity, yes. But caution is still advised. Yield compression, quality dilution and rushed deal-making are all risks if it is executed poorly. In this fast-changing environment, where hedge funds scale at speed, the real advantage lies not in access alone, but in disciplined sourcing and smart structuring.

That’s where Balqis Capital comes in.

Rising Interest Raises Fears of Rising Risks

The surge of hedge fund interest in private credit is a double-edged sword. On the one hand, it validates the asset class as a mature and scalable source of non-correlated returns. On the other, it invites a wave of capital chasing a finite set of quality deals.

For investors and introducers, this makes manager selection more important than ever.

Balqis Capital maintains a highly selective approach to private credit, combining deep local relationships with global reach. This disciplined sourcing helps mitigate the risk of entering over-heated trades or backing poorly structured lending opportunities.

Structure and Security First

Unlike some of these market entrants chasing growth, Balqis Capital builds each deal with investor security and structure at the centre. That philosophy is embedded in our flagship product, the Balqis Capital Bond.

The bond offers:

• A 10.25% fixed return
• Diversified exposure across secured private credit strategies
• Real asset security and contractual claims
• Insurance backstops and risk mitigation controls

But it also includes two institutional-grade differentiators:

1. LSE-AIM Listed IPO Participation

Investors gain access to companies listing on the London Stock Exchange’s AIM market – at offer price – allowing them to participate in equity uplift, without unstructured venture capital risk.

2. Jersey-Based M&A SPV

Led by a former Goldman Sachs executive, this M&A special purpose vehicle targets deal-driven returns through strategic transactions. With institutional governance, this adds a layer of smart equity participation underpinned by oversight and discipline.

Alan Graham, Balqis Capital Director UAE, said: “Private credit is changing rapidly. As hedge funds pour in, some investors may be tempted to chase the trend. But the real winners will be those who back teams with long-term discipline, strong structuring and access to deals that aren’t being rushed to market.”

“At Balqis, we’re committed to smart growth. That means putting the investor first and avoiding the noise. It’s not about how fast we scale, but how well we protect and grow capital,” he added.

Partnering With Advisers, Agents and Family Offices

The Balqis Capital Bond is designed to fit neatly into diversified portfolios. Whether you are advising on asset allocation or introducing clients to alternative income strategies, our structure provides clarity, transparency and attractive risk-adjusted returns.

We work with a global partner network, including wealth managers, real estate agents, financial advisers, stockbrokers and introducers, offering them a generous referral model.

In a market flooded with new entrants, quality and discipline remain rare. At Balqis Capital, we aim to be both. ** [Contact us]**(https://balqiscapital.com/contact-us) to find out more about private credit and diversifying your portfolio or helping your clients.