What is Private Credit?
Published: Jul 15, 2026
What is Private Credit?
Private Credit (or private debt) lets you earn interest by funding loans to businesses through non-bank lenders. These loans don't trade on public exchanges, so they aren't priced daily like stocks or bonds. Historically limited to institutions and the ultra-wealthy, these funds are now accessible directly from your self-directed individual Questrade account.
Private Credit is available to verified accredited and eligible investors at Questrade.
Already a Questrade customer? Browse Private Credit funds (opens in a new tab)
New to Questrade? Open an account to invest in Private Credit and 6,000+ other securities.
The value
Most portfolios rely entirely on public markets: stocks, ETFs, and bonds. They generally react on the same news cycle. Private Credit adds an income stream built on contractual loan payments that follow a set schedule, independent of public markets. These funds have historically offered yields above traditional fixed income, with low correlation to public equity prices, so adding them to a portfolio can reduce overall volatility.
How it works
Private Credit funds pool capital from investors to lend to businesses and real estate developers. The funds earn interest, which is distributed on a regular schedule, often monthly or quarterly.
Go to Products > Private Markets > Private Credit (opens in a new tab) to explore available funds. Each listing outlines the fund’s strategy, fee, terms, and minimums. You choose the fund, select your account and submit your order. Interest distributions are paid directly into your Questrade account based on the fund’s schedule.
Why Private Credit on Questrade
Access like this usually runs through an advisor or private banker. On Questrade, you review the fund and decide for yourself. You pay the fund's fees, with no Questrade markup for access. Your private and public holdings sit in the same account.
Questrade does not charge an advisory fee on Private Credit. You pay the underlying fund's fees, disclosed in the offering documents before you invest.
Invest using your self-directed individual TFSA, RRSP, Margin, or Cash account.
Interest payments are deposited directly into your Questrade account following the fund's schedule. All in one platform.
Minimums are set by the fund, not by Questrade. The available Private Credit fund accepts investments from $5,000 CAD.
Ready to invest? Browse Private Credit funds (opens in a new tab)
Don't have an account yet? Open an account
Who is Private Credit generally best for?
The income-focused investor. You want cash on a schedule. Private Credit funds distribute interest income monthly or quarterly. These payments are contractual; the schedule generally holds regardless of public market volatility.
The diversification-minded investor. Your portfolio is concentrated in public equities and fixed income. Private Credit adds an asset class with generally lower correlation to those markets. This may reduce overall portfolio volatility without sacrificing return potential.
Not a fit if you need liquidity. These are illiquid investments with lock-up periods and defined redemption windows. If you can commit capital for the fund's full term, Private Credit generally rewards your patience with scheduled income and diversification. If you need funds on short notice, this may not be the right product.
Who can invest
To invest in Private Markets on Questrade, you must meet all of the following:
Be an accredited investor - You qualify with pre-tax income over $200,000 CAD or over $300,000 CAD combined with a spouse) in each of the last two years, with a reasonable expectation of the same this year, or financial assets (such as cash and investments), net of related liabilities, over $1,000,000 CAD alone or with a spouse.
Or, for select products, be an eligible Investor: Some offerings are available under the Offering Memorandum exemption to investors who meet lower thresholds: pre-tax income over $75,000 CAD (or over $125,000 CAD combined with a spouse) in each of the last two years, with a reasonable expectation of the same this year, or financial assets (such as cash and investments), net of related liabilities, over $400,000 CAD alone or with a spouse. Investment limits may apply.
Be a Canadian resident outside of Quebec (Quebec coming soon) who is not a U.S. person (e.g., a U.S. citizen or U.S. tax resident).
Individual opportunities may also have additional requirements, such as minimum investment amounts or eligible account types, which will be disclosed on each fund's offering page.
Before you can invest, you'll need to be verified as an accredited or eligible investor at Questrade by submitting proof of income or net assets for our review, or auto-qualify via net assets at Questrade. Once verified, your status is valid for 12 months, after which you'll need to be re-verified before making any new investments.
What to know before you invest
Private Credit involves unique risks. Returns are not guaranteed, and capital loss is possible. These illiquid investments require long-term commitment; redemptions may face notice periods, penalties, or gating. Reporting is less frequent, and valuations often rely on estimates rather than daily pricing.
Investors are exposed to default, interest rate, and concentration risks. Tax treatment varies, and some products have registered-account restrictions. Consult a tax advisor and review the fund's offering documents for specific risk disclosures before investing.
How to invest in Private Credit
Open a self-directed account, or use one you already have. The available Private Credit fund can be held in an individual RRSP, TFSA, Cash, or Margin account.
Get verified. Questrade checks your profile against the eligibility requirements and may ask you to submit supporting documents.
Choose your investment. Each listing shows strategy, terms, fees, and minimum investment.
Place your order. Select the account, enter your amount, and digitally sign the subscription document.
Submit the order. Distributions flow into your Questrade account on the fund's schedule.
For detailed steps, see How to invest in a Private Credit fund.
Summary
Private Credit gives you access to an asset class built on contractual interest income from private loans, with low correlation to public markets. On Questrade, you invest through your self-directed individual account, pay only the underlying fund's fees, and hold private and public positions on one platform.
