Private Credit
Part of the yield engine. Approved by governance; discussion and analysis on the governance forum.
What is Private Credit
Private credit is lending by non-bank institutions directly to borrowers outside public debt markets: SME loans, consumer credit, trade receivables, and similar. These funds aim for high single-digit to low double-digit annual returns, with performance driven by credit selection rather than market direction.
Noon's deployment is into Fasanara Tactical Credit (F-TAC).
The fund focuses on asset-backed specialty finance: short-duration receivables and working capital facilities, spread across 45+ countries, where the underlying assets self-liquidate as invoices are paid and loans mature.
The average maturity runs around 126 days, which keeps the book short and continuously re-underwritten.
Noon Deployment Analysis: Summary
Return generation mechanism
Private credit investments typically generate higher yields than public bonds because investors demand an illiquidity premium for tying up capital without a public trading market. They generate revenue primarily through interest payments, floating-rate spreads, origination fees, and illiquidity premiums.
Track record
While F-TAC was seeded in September 2023, the fund deploys into longer-running credit strategies within Fasanara. The live fund's track record starts in 2023, and claims on this page describe the live fund only.
From the fund's reported history:
Positive returns every reported month since inception, typically 1.0 - 1.7% per month.
Gross return of 21.05% in 2024
The fund has exceeded its 15% net target since launch.
Reported volatility below 1%, near-zero correlation to crypto and public markets (Beta of approximately -0.05), and near-zero loss-given-default rates
A reported Sharpe ratio of 4.3 over the measured window
A note on reading these figures: a roughly two-and-a-half-year track record with no negative months and a Sharpe above 4 is unusual, and unusual reported figures deserve scrutiny of the measurement window and methodology rather than extrapolation. Private credit isn't marked to market daily, and marking conventions can smooth reported volatility.
The analysis window and source data are documented in the Noon Governance Forum assessment.
Documents
A full risk assessment can be found archived in Noon's Governance Forum
A detailed article about our Risk Assessment can be found here
Primer: Private Credit Primer
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