A.

Accredited Investor (AI)

An individual or entity meeting specific financial criteria that qualifies them to invest in private markets and alternative assets under regulatory exemptions.

Alternative Investments

Asset classes beyond traditional stocks and bonds, including private credit, real estate, hedge funds, and structured finance, often offering diversified return profiles.

Asset-Backed Lending (ABL)

A form of financing where loans are secured by tangible assets such as real estate or receivables, reducing risk exposure and enhancing capital protection.

B.

Borrower

An individual or entity that obtains financing from a lender, agreeing to repay the principal amount along with interest or other financing terms.

C.

Collateral

Assets pledged as security for a loan, providing lenders with protection in case of borrower default. In private credit, collateral often includes real estate, receivables, or other hard assets.

Covenants

Contractual obligations in loan agreements that set financial and operational conditions borrowers must maintain to ensure loan security.

D.

Debt

A financial obligation where a borrower receives capital from a lender under agreed terms, including repayment of principal and/or interest over a specified period. In private credit and asset-backed lending, debt is often structured as secured loans, backed by real estate or other collateral to mitigate risk and enhance lender protection.

Direct Lending

A form of private credit where institutional investors provide loans directly to companies, often secured by assets such as real estate, bypassing traditional banks.

Diversification

A risk management strategy that involves spreading investments across different asset classes, sectors, or geographies to reduce portfolio volatility.

F.

Floating Interest Rate

A variable rate that adjusts periodically based on a benchmark, such as SORA (Singapore Overnight Rate Average), influencing borrowing costs in private credit markets.

I.

Institutional Investor

An entity that manages large-scale capital and makes investments on behalf of clients, members, or stakeholders. Under Monetary Authority of Singapore (MAS) regulations, institutional investors typically include:

- Banks and Financial Institutions
- Insurance Companies
- Pension and Sovereign Wealth Funds
- Fund Management Companies
- Government Investment Entities
- Entities managing assets above the prescribed regulatory thresholds

L.

Lender

An individual or institution that provides capital to a borrower under agreed terms, expecting repayment of principal and interest. In private credit and asset-backed lending, lenders offer structured financing solutions secured by real estate or other tangible assets, ensuring risk mitigation and capital preservation.

Loan-to-Value (LTV) Ratio

A financial metric that compares a loan amount to the value of the collateral securing it, used to assess risk exposure and loan security.

M.

Mezzanine Financing

A hybrid debt structure combining elements of debt and equity, offering higher returns but subordinated in repayment priority to senior secured loans.

N.

Non-Bank Lending

Credit solutions provided by private lenders, asset managers, and alternative credit funds, offering tailored financing outside the traditional banking system.

P.

Private Credit

A non-bank lending market where capital is deployed through direct lending, structured finance, and asset-backed loans, providing stable, risk-adjusted returns.

R.

Risk-Adjusted Return

A measure of investment performance that accounts for risk exposure, ensuring that returns are optimized relative to underlying credit risks.

S.

Secured Loan

A loan backed by collateral such as real estate, offering credit protection and reduced lender risk in case of default.

Y.

Yield

The income generated by an investment, typically expressed as a percentage of the initial capital, reflecting the return profile of private credit and fixed-income instruments.