Private Lending: A Data-Driven Investment Strategy

Institutional and high-net-worth investors increasingly turn to private real estate lending as a structured investment vehicle that offers double-digit, risk-adjusted returns. Unlike traditional real estate ownership, private lending provides enhanced liquidity, passive income, and security through first-lien collateralization—making it an attractive alternative in today’s evolving financial landscape.

Why Private Lending is Outpacing Traditional Real Estate Investing

1. Yield Superiority

Private lending consistently delivers 8-10% annualized returns, surpassing REITs, corporate bonds, and rental income models. By contrast:

  • U.S. REITs have historically averaged 8-10% annualized returns.
  • Corporate bonds yield 4-6%.
  • Rental properties, after expenses and vacancies, often generate 6-8% net returns.

2. Asset-Backed Security

Every loan is collateralized with first-lien positions, mitigating default risk. In the event of borrower default, lenders have direct claim over the asset, ensuring capital protection.

3. Shorter Investment Cycles

With loan durations of 6-24 months, capital is redeployed faster, enabling compounding growth. This is significantly shorter than the typical real estate investment holding period of 5-10 years.

4. Lower Market Correlation

Unlike publicly traded assets, private lending offers insulation from stock market fluctuations. During periods of market volatility, private credit has historically maintained stable returns, whereas equities can experience sharp declines.

5. No Operational Risk

Investors benefit from truly passive income without the headaches of property management, vacancies, or asset depreciation—making it a lower-effort, high-yield investment choice.

ZINC Income Fund: Optimizing Risk-Adjusted Returns

ZINC Income Fund provides accredited investors access to institutional-grade private credit opportunities, delivering predictable cash flow through real estate-backed debt instruments.

Key Performance Metrics:

✅ 8-10% Targeted Annualized Returns – Offering higher risk-adjusted yields than traditional fixed-income investments. 

✅ 100% Secured Loan Portfolio – All loans are backed by tangible real estate assets with rigorous underwriting standards. 

✅ Exclusive Lending Through ZINC Financial – Proprietary deal flow, institutional-level underwriting, and structured risk mitigation strategies.

Strategic Allocation: Why Investors Are Shifting to Private Lending

Institutional investors are increasing their exposure to private credit due to its predictability and capital efficiency. According to Preqin’s 2024 Private Debt Report:

  • Private credit AUM is projected to reach $2.8 trillion by 2026, highlighting the sector’s rapid expansion.
  • Institutional portfolios now allocate an average of 12-15% to private credit, up from 5-7% a decade ago.
  • Private lending has outperformed traditional fixed-income instruments by 300-500 basis points over the last five years.

As a result, private lending is emerging as a core component of alternative investment portfolios, offering a stable, high-yield, asset-backed return profile that surpasses traditional bonds while reducing overall portfolio volatility.

For investors seeking superior fixed-income alternatives with low correlation to equity markets, ZINC Income Fund delivers a compelling solution.