Private markets are one of the most talked-about areas in finance today. As more investors look beyond traditional stocks and bonds, private market strategies have become a growing area of interest, and for good reason.
But for many, this part of the investment landscape can feel complex and unfamiliar. What exactly are private markets? How do they work? And how could they strengthen your portfolio?
Let’s take a closer look, particularly at one key area: Infrastructure Credit Strategies.
What Are Private Markets?
Private markets refer to investments that take place outside of public exchanges. Unlike publicly traded stocks and bonds, these investments involve privately held assets such as private equity, private credit, real estate, and infrastructure projects.
These markets have historically been accessible only to large institutions and ultra-high-net-worth investors. However, they are increasingly opening up to accredited investors seeking to diversify their portfolios and access opportunities not correlated with traditional public markets.
At Trajan Wealth, we’ve partnered with Overlay Capital, a specialized firm that helps identify and create opportunities in the private market space. One of our most distinctive offerings through this partnership is the Infrastructure Credit Strategy. This is an approach designed to finance essential projects that keep communities running.
What Is an Infrastructure Credit Strategy?
An Infrastructure Credit Strategy focuses on providing capital to companies that build critical infrastructure — the systems and facilities that form the backbone of our economy. These include:
- Power plants and renewable energy facilities
- Sewer systems and water infrastructure
- Roads, bridges, and other public utilities
By investing in this space, investors can support projects that have tangible real-world impact while also pursuing meaningful portfolio diversification.
How It Works:A Real-World Example
Consider a development firm planning to build a solar power plant. The developer may have all the essential components lined up — engineering plans, land, materials, and skilled labor — but still face substantial upfront costs before a single kilowatt of power is generated.
This is where Trajan Wealth’s Infrastructure Credit Strategy, in partnership with Overlay, would come in.
Our approach helps provide the financing necessary for developers to make deposits with larger utility companies that agree to purchase the electricity once the plant is operational. These contracts allow projects to move forward while helping smaller firms manage cash flow challenges.
Managing Risk with Structured Contracts
A central focus of this strategy is risk management. Investor funds are typically secured through contracts with large, established utility companies. These are organizations with the financial strength to honor commitments and refund deposits if a project does not proceed as planned.
This means that the capital invested in these infrastructure projects is potentially less exposed to downside risk, since larger utilities are better equipped to absorb potential setbacks.
In short, the structure is designed to provide steady opportunity with a focus on capital protection, a balance many investors look for when diversifying beyond traditional markets.
What This Means for Investors
While private markets were once reserved for major institutions, they are now becoming more accessible to accredited investors who want to add new layers of diversification to their portfolios. In addition, Trajan along with Overlay Capital seeks opportunities in the lower-middle markets, a space many of the larger wirehouses may not have access to.
For investors, infrastructure credit offers several potential advantages:
- Diversification: These investments behave differently from public markets, helping to reduce overall portfolio volatility.
- Attractive Return Potential: By financing smaller, underrepresented projects, investors may gain access to higher-return opportunities that are less crowded.
- Meaningful Impact: Infrastructure development fuels progress by powering homes, creating jobs, and supporting sustainable growth for future generations.
Because the private infrastructure space remains relatively underexplored, there can be less competition and therefore, greater opportunity for well-positioned investors.
Investing in the Future
Infrastructure investing isn’t just about potential financial gain. It’s about supporting the systems that sustain our daily lives.
By helping fund projects that build cleaner energy, stronger communities, and more resilient economies, investors can participate in both economic and societal growth.
At Trajan Wealth, we believe private market strategies, including Infrastructure Credit, represent a forward-looking addition to a well-diversified investment plan.
Key Takeaways
- Private markets provide unique opportunities for accredited investors to diversify beyond traditional assets.
- Infrastructure Credit Strategies help fund essential development projects while focusing on managing investment risk.
- These opportunities are increasingly accessible allowing investors to participate in projects that power the future.
If you’d like to learn more about private market investing and how our Infrastructure Credit Strategy could complement your financial goals, contact the Trajan Wealth team.
