Private debt includes mostly non-bank institutions making loans to private companies, backed by real assets or real estate. Debt can include a direct lend, distressed debt, mezzanine, real estate and infrastructure and venture debt. Typically, the rates that these private lenders might be 5-15% higher than bank loans, however access to capital is generally faster.
For investors, private debt can provide a stable income while secured by an asset. The best case scenario: the investor receives their interest payments and then repayment of the contractual loan amount. Both parties have potential to benefit. The worst case scenario: the lender fails to pay the interest and principal back, so you the asset or real estate has to be sold.
Farmland is real estate, but also serves as a business. The increased interest in farmland over the past 10 years has increased the price of farmland.
Farmland is increasingly being seen as an investment: the investor benefits from the cash flow generated from the land and the land itself can be hedged against inflation (this means the investment will not lose value compared to inflation).
Timberland is also real estate related, but its unique characteristics make it particularly appealing to investors. Timberland is a plot of land that is grows and harvests trees, which produces reasonable income for investors. However, it is also a renewable resource and an investment that keeps on giving. And the longer trees grow, the more valuable the wood becomes. This produces a predictable growth rate if bought at the correct price. Additionally, the land appreciates.