The Toronto-based fintech’s new Wealthsimple Private Credit product will let retail investors lend money directly to private companies and collect interest on those loans. The fund’s current target is a nine per cent annualized yield. (The Logic)

Talking point: Typically it’s just institutional investors, like the Canada Pension Plan Investment Board, or those who are significantly wealthy, who can access private credit. The company said investors may be able to gain higher returns since private credit takes on more risk than traditional products, like GICs. This is Wealthsimple’s second alternative-investing product after it launched its Venture Fund I in April 2022, which allows retail investors to put their money in private startups and some private equity funds. Like private credit, usually only a group of institutional or ultra high-net-worth investors could participate in venture capital funds.