Heron Finance's Portfolios Outperform Private Credit Peers Through Smart Diversification

Heron Finance's curation of private credit funds provides accredited investors, RIAs, and family offices access to leading fund managers through custom portfolios.

SAN FRANCISCO, Sept. 16, 2025 /PRNewswire/ -- Heron Finance announced that its curated portfolios of high-quality private credit funds are outperforming a broad peer group of U.S. private credit funds across key metrics. The analysis is based on SEC filings as of June 2025 and includes data from more than 60 of the largest U.S. private credit funds, representing over $1 trillion in aggregate private credit assets managed across funds and accounts. The peer group includes all funds in the dataset, excluding those currently available through Heron as of August 2025.

Heron's results highlight the importance of diversification—investing across multiple managers and maintaining portfolios that are balanced across industries, market segments, and loan count. The data, which reflects median percentages across the dataset, suggests that portfolios with broader loan exposures experienced lower PIK interest, lower defaults, lower losses, and higher returns net of fees.

Comparative Results: Heron vs. Peer Group

Heron portfolios provide investors with exposure to 12+ leading private credit managers across all 11 GICS sectors, representing more than 3,000 unique loan exposures in a single portfolio.

This level of diversification and focus on manager selection has delivered the following results when comparing Heron to its peer group of 60 U.S. private credit funds.*

Total Returns Net of Heron Fees:

• Funds on Heron: 9.7%
• Peer Group: 7.5%

PIK Interest:

• Funds on Heron: 3.5%
• Peer Group: 4.9%

Non-Accruals:

• Funds on Heron: 0.0%
• Peer Group: 1.1%

Net Credit Loss:

• Funds on Heron: -0.2%
• Peer Group: -0.6%

Loan Valuation:

• Funds on Heron: 100.5%
• Peer Group: 99.4%

Underperforming Assets:

• Funds on Heron: 2%
• Peer Group: 8%

Heron's Foundation: Manager Quality

Heron Finance emphasizes rigorous manager selection, focusing on firms with:

• Downturn experience – Credit managers with a track record of navigating stress periods such as the Global Financial Crisis, sovereign debt crises, Fed rate hikes, and the pandemic.
• In-house restructuring expertise – Teams supported by an experienced workout bench with deep bankruptcy capabilities.
• Institutional scale – Managers with Multi-billion-dollar AUM  with deep industry networks, institutional risk infrastructure, and stable/strong balance sheets.

About Heron Finance:
Heron Finance is a private credit investment platform serving accredited investors, RIAs, and family offices. By building custom, diversified portfolios from institutional-quality private credit funds, Heron helps clients access income-producing assets without the complexity or opacity of public market wrappers.

Media Contact:
[email protected]

*Dataset source: SEC filings for June 2025. Dataset includes over 60 of the largest U.S. private credit funds, which are actively managed by firms that collectively manage in excess of $1 trillion in private credit assets across their funds and accounts. Percentages shown as medians. Funds on Heron includes funds being made available through Heron as of August 2025. Peer group includes all funds in the dataset but excludes Heron funds. Notes: PIK Interest shown as PIK interest income as percentage of total investment income into the fund. Non-Accruals shown on a cost basis. Net Credit Loss shown as realized credit losses, net of gains, over the last 12 months, as percentage of fund net asset value. Loan Valuation based on first lien loan fair market value divided by cost. Underperforming Assets shown as percentage of assets considered by the underlying credit managers as performing below their own expectations, and not necessarily indicative of potential defaults. Total Returns shown as annualized Q2 2025 IRR after Heron fees.

SOURCE Heron Finance