Asset class: Private Credit Fund
What are Private Credit Funds?
Private credit funds are investment vehicles that lend directly to borrowers—such as small businesses, real estate developers, and fintech lenders—outside of the traditional banking system. As part of the rapidly growing private debt market, these funds aim to generate high single- to low double-digit annual returns while maintaining lower volatility than public markets. They achieve this by financing niche, underbanked sectors, capturing credit and illiquidity premiums, building diversified portfolios of short- to medium-duration loans, and actively managing risk through rigorous underwriting and oversight. In doing so, private credit funds fill the financing gap left by banks and offer investors a stable, income-generating, and uncorrelated asset class—particularly valuable during times of macroeconomic uncertainty.
Read our full Private Credit Funds Primer for a detailed walkthrough of how they work, risks, examples, and trusted learning resources.
We have evaluated several credit funds, which fit into two general categories:
- Tier 1 Private Credit Platforms
Fund/Manager // Focus // Typical Returns
Oaktree Capital // Broad private lending, distressed debt // 8–15%
Apollo (MidCap) // Direct lending, middle-market // 7–12%
Ares Management // Direct lending, real estate credit // 7–13%
Blackstone Credit // Large-scale corporate private credit // 6–11%
Blue Owl Capital // Tech-enabled lending (e.g. Owl Rock) // 8–12%
These are large, sometimes slower-moving and less flexible than other credit funds, but
robust.
- Agile or Niche Credit Managers
Fund/Manager // Focus // Typical Returns
Fasanara Capital // Receivables, consumer credit, fintech // 10–15%
Cauris // Emerging market fintech lending // 12–16%
Harmonic Fund Services // Marketplace lending, invoice finance // 8–14%
These are more flexible credit managers who can be more receptive to the needs of Noon and our users.
As we have needs for a product with more flexibility than traditional private credit funds, we have opened discussions with several of the more agile parties in this space, and secured an exciting deployment opportunity for Noon.
Asset: Fasanara Tactical Credit Credit (F-TAC)
F-TAC represents Noon Capital’s entry into private credit, an increasingly popular asset class driven by strong institutional demand for yield, limited correlation to public markets, and low volatility. F-TAC (Fasanara Tactical Credit) is a multi-asset, unconstrained private credit strategy that targets globally diversified short-duration opportunities across trade receivables, consumer lending, real estate-backed debt, and other niche credit markets. With strong historical performance and a robust underwriting framework, F-TAC is a natural next step as we scale our yield strategies while preserving downside protection. F-TAC offers Noon Capital holders 100% positive months, sub-1% volatility, and more than 2× outperformance versus the Bloomberg US High Yield Index since launch, with near-zero correlation to crypto or public markets.
Noon Risk Assessment: Summary
Noon Risk Assessment: Details
Market Risk
F-TAC exhibits exceptionally low market risk. From October 2023 to April 2025, its beta versus the S&P 500 was -0.05, indicating it moves independently and even slightly countercyclically to equities. This characteristic makes it an effective hedge and an ideal allocation for market-neutral or downside-resilient portfolio construction. The ultra-short-duration portfolio acts as a powerful shock-absorber in risk-off periods while still compounding double-digit yields. Its performance profile supports capital preservation during risk-off environments, reinforcing its appeal as a defensive yield strategy.
Volatility Risk
F-TAC’s volatility risk is extremely low for a double-digit-yielding asset. Over the same period, it posted a Sharpe ratio of 4.3, an extraordinary figure that reflects high return generation with minimal risk. Notably, F-TAC has had zero down months since inception, a performance consistency rarely seen in high-yield credit. This combination of stability and returns makes F-TAC an outlier in the broader credit landscape, particularly for investors prioritizing low-drawdown, high-yield strategies.
Credit Risk
F-TAC maintains a diversified credit exposure across SME, consumer, and real estate-backed debt. While these sectors inherently carry default risk, Fasanara’s originators are contractually bound by strict underwriting standards and performance covenants, significantly mitigating loss potential. Furthermore, the majority of assets carry first-loss protection and other credit enhancements, resulting in an added layer of downside protection. Additionally, the fund is highly diversified across borrowers, geographies, and lending partners, reducing concentration risk and strengthening overall credit resilience. This results in a strong credit risk profile with a high degree of structural protection.
Liquidity Risk
Noon has devised a proprietary liquidity strategy for private credit funds like F-TAC which allows it to redeem much more often than the typical quarterly redemption cycle. While some liquidity risk remains, Noon has stress-tested its liquidity strategy under numerous adverse scenarios and is confident in its ability to execute. As of Q1 2025, F-TAC manages under $500 million in assets, with broader Fasanara AUM exceeding $4 billion—supporting operational scalability and access to deal flow but still subject to the typical tradeoffs of private market liquidity.
Counterparty Risk
Fasanara Capital brings a strong institutional pedigree to F-TAC. Founded in 2011, it has over $4 billion in AUM and more than a decade of consistent returns across its core strategies, with no down months in its flagship funds. This track record underscores the firm’s operational discipline, underwriting excellence, and cycle-tested credit expertise. For Noon, F-TAC represents a partnership with a deeply experienced counterparty and strong alignment of interests via co-investment and performance-linked compensation.
Smart Contract Risk
F-TAC operates entirely off-chain, using conventional fund infrastructure for all investment operations. Subscriptions, redemptions, custody, and portfolio management are conducted through traditional financial rails, with no reliance on smart contracts. This eliminates exposure to blockchain-specific risks such as bugs, exploits, or oracle failures. Noon’s integration via Dinari ensures secure tokenized representation of ownership, without compromising on infrastructure security or adding unnecessary technical complexity.
