From Liquidity to Longevity: The Top 5 Investor Questions We Get—and Our Answers

Private debt is gaining popularity—especially among investors looking for stability, passive income, and returns that aren’t tied to stock market swings. But it also comes with a learning curve, especially for those used to public markets.

At LBC Capital Income Fund, LLC, we talk to hundreds of investors every year. Many are experienced, others are new to private debt, but most ask the same core questions before they commit.

Here are the top 5 investor questions we get—along with the straight answers you deserve.

1. “How liquid is my investment?”

Let’s start with the big one: private debt liquidity.

Private debt isn’t like a brokerage account. You’re not buying a publicly traded security you can sell the next day. When you invest with us, your capital is deployed into short-term, asset-backed loans—real loans to real borrowers—and those loans need time to mature.

That said, our average loan duration is between 6 to 18 months, and we structure our portfolio for regular turnover. We also offer limited liquidity windows (every 6 months) for eligible redemptions, depending on your investment agreement and fund terms.

In plain English? Your money isn’t locked away forever, but it’s not instantly liquid either. If liquidity is your top priority, we’ll help you understand exactly how our timeline works so there are no surprises.

Bottom line: Private debt is less liquid by design—but our short-term strategy offers more flexibility than many longer-locked alternatives.

2. “When and how do I get paid?”

This is where private debt shines. Unlike growth-focused investments that require you to wait for an exit event, debt investing pays you along the way.

At LBC Capital Income Fund, LLC, we offer monthly distributions—typically around the 15th of each month. You’ll receive interest income, either reinvested or deposited directly into your bank account, depending on your preferences.

Because we structure our loans with monthly interest payments from borrowers, this cash flow is predictable. We don’t “manufacture” returns or delay payouts—what comes in is what goes out.

Bottom line: You earn passive income monthly. It’s real cash flow you can plan around, not just paper gains.

3. “How are you protecting my capital?”

This is one of the smartest questions any investor can ask. After all, return of capital is just as important as return on capital.

Here’s how we manage risk:

• Conservative underwriting: We focus on low loan-to-value (LTV) deals—often under 65%—so there’s real equity beneath every loan.
• First-position liens: Most of our loans are senior secured. That means we’re first in line if a borrower defaults.
• Asset-backed lending: These aren’t unsecured personal loans. Every loan is backed by tangible collateral (real estate, equipment, etc.).
• Rigorous borrower screening: We vet not only financials but track records, business models, and exit strategies.
• Diversification: We don’t bet the farm on one big loan. Your investment is spread across a pool of loans and borrowers.

And if something does go sideways? We have hands-on workout strategies, experienced recovery teams, and capital reserves to minimize loss and keep distributions steady.

Bottom line: Risk is part of any investment. But we’re structured to control it, price it appropriately, and respond quickly when needed.

4. “Can I reinvest my earnings—or take them in cash?”

Yes, and yes.

If you’re looking to compound your returns, you can opt into our reinvestment program. Your monthly payouts will be rolled into your principal, increasing your earning base over time—great for long-term wealth building.

Prefer cash flow? No problem. We’ll deposit your distributions directly into your account each month, so you can use the income however you like.

Flexibility is part of how we serve a broad investor base—from retirees living off income to professionals growing their portfolio.

Bottom line: You’re in control. Take the money now, or put it back to work.

5. “What makes private debt a good fit right now?”

We hear this especially often during volatile markets or rising interest rate cycles—and it’s a valid concern.

Here’s why private debt makes sense today:

• It’s income-producing. While equities swing up and down, debt offers steady, contractual income.
• It’s backed by real assets. That makes it more secure than many fixed-income alternatives, especially in an inflationary environment.
• It benefits from higher interest rates. Because we issue short-term loans, new deals get priced at today’s rates—not last year’s. That means higher income potential for you.
• It’s less correlated to public markets. When the S&P is in freefall, private debt doesn’t automatically follow.

For many of our investors, it’s a core part of a diversified portfolio—right between high-risk growth and ultra-safe but ultra-low-yield options like Treasuries.

Bottom line: If you want stable income with real-asset backing and less exposure to market chaos, private debt is worth a serious look.

Questions Welcome

The more questions you ask, the better your investment decisions become—and we welcome them.

Transparency isn’t just a value for us—it’s part of how we build trust and long-term relationships. Whether you’re new to private debt or managing a multi-million-dollar portfolio, we’re here to help you understand exactly where your money’s going, how it works, and how it comes back.

Still curious? Reach out. Ask the follow-ups. We’ll walk you through it—honestly, clearly, and without jargon.

Because smart investing doesn’t come from guessing—it comes from asking the right questions.