Heron Finance, which describes itself as a technology-first SEC-registered investment advisor, has launched the Heron Personalized Private Credit portfolio, an investment solution which provides accredited U.S. investors with access to the growing private credit asset class.
Heron’s Personalized Private Credit portfolio uses a proprietary process to create individual portfolios that mirror portions of exposure to the world’s leading private credit funds. This high-quality, diverse exposure to hundreds, and soon to be thousands, of senior secured loans provides investors with consistent passive income.
Heron Finance was built by the Warbler Labs team, developers of an open-source lending protocol that has been used to originate over $110 million of loans in 20 countries since its founding four years ago.
The Heron Finance Personalized Private Credit portfolio provides investors with access to fund managers who collectively manage $1 trillion-plus in assets and have 10+ years experience. It also brings exposure to high-quality private credit funds with 90%+ first lien senior secured loans.
The portfolio is diversified across hundreds of loans and 11 sectors. Heron is levying a relatively low management fee — 1% with zero early withdrawal fees. It says the yield targets are 7% to 12% after fees, based on an investor’s risk profile.
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The Heron Finance approach to private credit
As a fully automated solution, Heron uses an investor’s personal risk profile to construct a diversified private credit portfolio. The portfolio’s diversification strategy helps investors mitigate losses while generating consistent income. Additionally, Heron does not require a high minimum investment like traditional private credit funds. The end result is a more accessible, personalized high-yield private credit portfolio.
In a market seeking consistent, high yield returns, private credit has emerged an interesting asset class. Previously, exposure to high-quality loans originated by leading institutional private credit managers was limited to the ultra-wealthy and institutions. Heron’s Personalized Private Credit portfolio expands access to this asset class to all accredited U.S. investors.
“We’re excited to introduce a private credit solution that not only provides access to institutional-grade deals but also provides investors with a personalized portfolio based on their preferences,” said Mike Sall, co-founder and CEO of Heron Finance. “We believe this level of personalization has never been possible before with such high-quality credit funds. Heron’s Personalized Private Credit portfolio opens up opportunities to a broader audience, offering the access and transparency traditionally associated with more public markets.”
