Venture debt: a structural framework – understanding risk, returns, and the credit cycle

Not all private credit strategies work the same way. Venture debt sits in a distinct position — senior secured, contractual income, and outcomes driven by liquidity management and durability rather than valuation. This piece breaks down how the asset class actually works for investors looking to understand the risk and return profile.

Inside the research

• Where venture debt sits in the capital structure
• How credit risk builds and resolves over time
• Why losses lag equity market signals by months
• Espresso’s underwriting framework behind durable returns

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