> For the complete documentation index, see [llms.txt](https://docs.noon.capital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.noon.capital/3.-the-yield-engine/yield-strategies/private-credit.md).

# Private Credit

Part of the yield engine. Approved by governance; discussion and analysis on the governance forum.

## <mark style="color:$primary;">What is Private Credit</mark>

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)**.&#x20;

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.&#x20;

The average maturity runs around 126 days, which keeps the book short and continuously re-underwritten.

## <mark style="color:purple;">**Noon**</mark> <mark style="color:$primary;">Deployment Analysis: Summary</mark>

<figure><img src="https://3816918787-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FL26rQzcNmiUZrCXkxkjS%2Fuploads%2FdsxRoDPG5wNuv2dB05QI%2FNOON%20Deployment%20Analysis%20F-TAC%20(Fasanara).png?alt=media&amp;token=d1394b59-30ee-41a5-8372-91942bb8b639" alt=""><figcaption></figcaption></figure>

## <mark style="color:$primary;">Return generation mechanism</mark>

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**.

## <mark style="color:$primary;">Track record</mark>

{% hint style="info" %}
The performance claims in this section are drawn from the fund's reported history and the published analysis. Note that past performance is not indicative of future results.
{% endhint %}

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.&#x20;

The analysis window and source data are documented in the <mark style="color:purple;">**Noon**</mark> [**Governance Forum assessment**](https://forum.noon.capital/t/risk-assessment-f-tac-private-credit/52).

## <mark style="color:$primary;">Documents</mark>

* A full risk assessment can be found archived in <mark style="color:purple;">**Noon's**</mark> [**Governance Forum**](https://forum.noon.capital/t/risk-assessment-jaaa-clo/25/10)
* A detailed article about our Risk Assessment can be found [**here**](https://x.com/noon_capital/status/2034756434676916287)
* Primer: [**Private Credit Primer**](https://596450103-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvawK0RJiR8PpG791Q3EH%2Fuploads%2FRF31ZszKUfaBZYn0AIBM%2FNoon%20%7C%20Private%20Credit%20Funds%20Primer%20.pdf?alt=media\&token=36ceb35a-e10c-4407-a035-60f6c15286ca)