The private credit market has grown significantly in recent years, with both borrowers and lenders interested in the flexibility and customization of private transactions, especially as banks are constrained in their lending activities. In an environment of higher (albeit potentially moderating) interest rates, and in light of significant refinancing needs (Commercial Real Estate alone will see $1.5 trillion in debt mature by the end of 2025), private credit investing offers appealing opportunities.

We are moving back towards our Strategic targets by shifting a modest amount of cash/short-duration fixed income back up to U.S. Small Caps. We will remain slightly underweight Growth vs. Stability on the grounds of very weak forward return expectations for U.S. Large Caps and negative momentum in China. The U.S. economy is relatively well positioned for a potential soft landing in 2024. In the meantime, we are keeping a close eye on opportunities in distressed debt and private income as the year evolves.

This is a summary. Please contact your client advisor for the full Tactical Allocation Viewpoints report.

Private family trust companies (PTCs) are business entities established by families to serve as the trustee of their family trusts. The PTC may be an efficient and effective way to optimize family wealth governance through enhanced family control, beneficiary engagement and education, and multigenerational succession planning.

In this article, we offer a brief introduction to private trust companies (PTCs) provided by Willow Street, a sister company to Pathstone. In December, our colleagues Scott Weaver and Kea Molnar presented on the benefits of PTCs to Family Enterprise USA. Scott was recently named Chief Fiduciary Officer of Pathstone and also serves as General Counsel and Chief Fiduciary Officer of Willow Street; Kea is a Managing Director at Willow Street.

Willow Street specializes in advisory, governance, and operations for Wyoming PTCs and provides corporate trustee services to clients seeking a responsive, relationship-focused fiduciary. The full PTC guide is available via this link. To learn more about whether a PTC is suitable for your needs, please contact your Pathstone advisor.