Non-Blended Private Credit Funds
A non-blended fund has a single loan type (e.g. 1st mortgage) and a single loan security type (e.g. asset backed) and is restricted from investing in other loan types under the fund PDS / IM.
This makes it much easier for investors to see the true risk and return of the fund and compare funds.
Blended Private Credit Funds
A blended private credit fund has a mix of loan types (e.g. 1st mortgage, 2nd mortgage, preferred equity and corporate loans) and has a mix of loan security types (e.g. asset backed and balance sheet backed).
This makes it very difficult (impossible) for investors to understand the true risk and return of the fund.