What’s Private Debt, and why is everyone talking about it?

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At its core, private debt is simple: a company borrows money from investors and agrees to pay it back, with interest.

Unlike investing in shares (where your upside depends on a company’s future success), private debt is more structured. You’re the lender, not the owner. You don’t wait for an IPO or acquisition, you receive scheduled repayments, often quarterly, with a fixed return.

It’s income-first investing.

Private debt can take different forms depending on the business or asset involved. Some loans are secured - backed by property or equipment. Others are riskier, unsecured, or tied to revenue performance.

Here are a few common types:

• Direct lending to businesses (usually mid-sized, outside the big banks)

• Asset-backed lending, such as real estate development loans

• Mezzanine debt, a hybrid between debt and equity with higher risk and potential upside

• Revenue-based finance, where repayments rise and fall with company revenue (popular in e-commerce)

It’s called “private” because these deals happen outside public markets. No stock exchange. No ticker. Just direct lending relationships, often facilitated by regulated platforms.

For investors, that means access to predictable income and a different risk profile than equities. But it also means accepting longer lock-up periods and less liquidity.

Why Private Debt is growing fast

Private debt isn’t a brand-new idea, but it’s having a serious glow-up. What used to be the domain of banks and big institutions is now being shaped for broader access. Here’s why it’s suddenly everywhere:

After 2008, traditional banks pulled back from lending to smaller and mid-sized businesses. That left a gap - one that private lenders stepped in to fill. Fast forward to today, and the market for private debt has ballooned to $1.5 trillion globally, with forecasts pushing it past $2.6 trillion by 2029.

At the same time, interest rates have climbed. Public bond yields have improved, but many still fall short once you factor in inflation and fees. That’s pushed more investors toward alternative sources of yield and private debt offers exactly that, often targeting returns in the 8–12% range.

Add in the rise of investor-friendly platforms, and private debt starts to feel a lot more approachable. You no longer need €1 million and a legal team to get involved. Platforms like Property Bridges and Initiative Ireland now let individuals invest from just a few hundred euro, typically in real estate-backed loans with clear terms and timelines.

In a world of volatility, that combination (predictable income, clearer access, and diversification) makes private debt increasingly attractive.

What Retail Investors should watch out for

As access to private debt expands, it’s easy to get caught up in the pitch: steady returns, lower volatility, and income that feels almost bond-like. And while much of that is true, it’s not the full picture.

Private debt isn’t risk-free - it’s just differently risky.

Unlike public stocks or bonds, private debt investments are typically illiquid. Once your money is in, it’s locked up for the full term (usually a few years). There’s no “sell” button if you change your mind, or need the cash.

Then there’s the structure itself. Every deal is different: some are secured against property or assets, others are riskier unsecured loans. Understanding the downside protections (if any) matters just as much as the return profile.

And while platforms make private debt feel more accessible, that accessibility can sometimes mask complexity. You’ll still need to read the fine print. Some platforms offer automated diversification or pre-vetted deals, but your risk is still real if a borrower defaults.

A few key questions to ask before you invest:

• Can I afford to have this money locked away for 2–5 years?

• Do I understand what happens if the borrower can’t repay?

• Is the platform regulated? Are the loans secured?

Private debt can be a smart piece of the puzzle - but only if you know where it fits in your broader plan.

Where can Investors access private debt?

Private debt is no longer just for institutions. Today, investors have multiple entry points especially through real estate and SME lending platforms.

In Europe, platforms like Property Bridges (Ireland), EstateGuru (EU), and CrowdProperty (UK) let individuals invest in development loans from as little as €50 to €500. These loans are often secured against property and target annual returns in the 6–10% range.

Larger investors can access private credit funds, some of which now offer semi-liquid structures or ETF-style formats in markets like the U.S. These pool capital to lend directly to private companies, often targeting steady income and lower volatility.

Newer models, like revenue-based finance are also emerging. Platforms such as Wayflyer lend to digital businesses based on future revenue. While not retail-facing (yet), they signal where the private debt space is heading.

The key? Each access point offers different levels of risk, liquidity, and transparency. Knowing what you’re buying (and why) matters more than ever.

A growing opportunity, if you understand it

Private debt is growing for a reason. It offers investors something increasingly hard to find: structured, income-generating returns that don’t depend on public market performance.

But like any private market asset, it comes with trade-offs. The returns are attractive - but the capital is locked up. The structures are familiar - but the risks can be less visible. And while access is improving, that doesn’t make every opportunity equal.

For individual investors, private debt can be a powerful complement to a broader portfolio - especially when you’re looking to balance growth with income or diversify away from public equities.

The important thing isn’t just whether you can invest in private debt.
It’s whether you understand what role it plays - and what you’re giving up to get that return.

What we’ve been working on at Shuttle

• Testing out the latest Shuttle product with users 🧑🏻‍💻

• Building towards our first Product Hunt launch 🚀

• Finalising documentation ahead of UK Regulation process 🇬🇧

The Unsophisticated Investor is brought to you by Scott & Rob, the founders of Shuttle. We’re both sick of private markets being a playground exclusive to the ultra-wealthy so we started a company to challenge the status-quo. Shuttle’s singular focus is to unlock private markets for Millennial and Gen Z tech professionals and help them build wealth through the highest performing private market opportunities.

Scott & Rob
Shuttle Co-Founders