TDCI’s Securities Division published a September 9, 2026 investor-education note for Tennesseans eyeing private credit. The post defines the product, lists liquidity and valuation risks, and weighs those risks against the yield and diversification benefits it cites.
On definition, TDCI says private credit “simply refers to lending that happens outside public markets – typically from non-financial institution lenders to private companies or projects.” It adds that these investments “characteristically offer higher returns than most traditional investments due to their illiquidity and complexity” — and that the same illiquidity and complexity may make them a poor fit for some long-term strategies.
On liquidity, TDCI is blunt: “Private credit loans are not publicly traded, which means funds/assets are not able to be quickly sold to allow for withdrawals.” Withdrawals are called redemption requests — an investor’s ability to ask for some or all of their capital back, subject to the fund’s terms — and TDCI notes some major funds have recently limited withdrawals when too many investors tried to pull money at once.
On redemptions, TDCI explains that many requests “are typically valued and processed at the current Net Asset Value (NAV) and then capped at approximately 5% of the NAV,” so a request above the quarterly cap may be only partly paid.
On the upside, TDCI notes private credit “cites returns averaging in the 8-12 percent range which often exceeds what investors typically can earn from public bonds.” Questions about whether an investment is legitimate go to the Securities Division at tn.gov/securities, [email protected], or 800-863-9117.
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By All Seasons Insurance Group — informational only; no coverage or eligibility promise.
| TDCI topic | What the Securities post says |
|---|---|
| Definition | Lending outside public markets to private companies or projects |
| Liquidity | Loans not publicly traded; withdrawals can be slow or limited |
| Redemptions | Often NAV-priced and capped near 5% of NAV |
| Cited yields | Averages described in the 8–12% range vs many public bonds |
What does TDCI’s Securities Division say private credit is?
TDCI’s investor-education post says private credit refers to lending that happens outside public markets, typically from non-financial institution lenders to private companies or projects.
Why does TDCI warn that private credit funds may not be liquid?
TDCI states private credit loans are not publicly traded, so funds or assets often cannot be sold quickly to support withdrawals or redemption requests.
What redemption cap does TDCI describe for some private credit funds?
TDCI notes many private credit redemption requests are valued at current NAV and capped at approximately 5% of NAV, so large withdrawal requests may be only partly filled.
What yield range does TDCI cite for private credit?
TDCI writes that private credit cites returns averaging in the 8–12 percent range, which often exceeds what investors typically can earn from public bonds.
Who should East Tennessee investors call with legitimacy questions?
TDCI directs questions about investment legitimacy to the Securities Division at tn.gov/securities, [email protected], or 800-863-9117.
Is private credit the same as a Tennessee insurance policy?
No. This post restates TDCI Securities investor education. Insurance products are separate; talk with a licensed professional before mixing investment and insurance decisions.
Does this article recommend buying private credit?
No. It summarizes TDCI’s public risk and benefit discussion so Tennesseans can ask better questions. It is informational only.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal insurance policy review. Bring your current declarations pages.
