Our month-end letter for January discusses the links between private equity, private credit and elevated financial risks for the rest of us. The segment below offers a primer. Opacity and complexity in financial products often cloak elevated risk and even deceit.

Private credit, a form of lending by non-bank financial institutions to businesses outside of public markets, was once a niche corner of Wall Street. Now, private credit is going mainstream as it seeks funding from retail investors. CNBC’s Hugh Son breaks down the rise of private credit, why retail investors are looking into private credit and the risks and upsides of investing in the space. Here is a direct video link.