US Private Equity & Private Credit

Accessing the primary engine of corporate growth in North America.

While public markets command headlines, the number of publicly traded US companies has declined over the last two decades. The most significant value creation now occurs in private markets.

The Private Credit Opportunity

With traditional banks retreating from middle-market lending due to regulatory constraints, Private Credit (Direct Lending) has emerged as a compelling asset class for Kuwaiti investors seeking high-yielding, senior-secured exposure to US corporate cash flows.

  • Yield Premium: Often delivering 400-600 basis points over broadly syndicated loans.
  • Senior Security: Top of the capital structure, offering strong downside protection.
  • Floating Rates: Natural hedge against inflation and rising interest rates.

US Middle Market Buyouts

The core of the US PE market lies in the middle market (companies with $10M - $100M EBITDA). This segment offers lower entry multiples compared to mega-cap buyouts and multiple avenues for value creation (operational improvement, buy-and-build strategies).

Structuring for Kuwaiti LPs

Investing in US partnerships (LPs/LLCs) generating Effectively Connected Income (ECI) can force foreign investors to file US tax returns and pay US corporate tax rates. Proper structuring is vital:

The Corporate Blocker: Kuwaiti investors typically utilize a US or offshore Corporate Blocker entity. The fund distributes income to the Blocker, which pays US corporate tax and blocks the ECI and US tax filing requirements from reaching the Kuwaiti individual or family office.