Private Credit

…peaker A: Steve, what do you think about the following? Uh, because it is a bit of a concern I have a lot of the growth in uh, private credit in particular in recent years has been driven by this incredible success and emergence of um, evergreen structures.…

…So I think our guests are in for a real treat as we talk about private credit, private real estate, asset backed debt.…

…[00:00:00:01 - 00:09:12:01] So just five years ago, the private credit market held about $500 billion, which is a lot of money, obviously, but today.…

…So real estate, private credit, private equity, venture capital, crypto, farmland, real assets, you know all the food groups, all the private food groups.…

…This is the memo by Howard Marks what's Going on in Private Credit?…

…[00:03:36 -> 00:03:43] So Brian has spent decades building across private equity, private credit, private real estate.…

…And then a group called Lumonic, which is a private credit portfolio monitoring solution.…

…If you go to platforms, say, hey, here's a bunch of capital, yeah, they'll sell you loans, but how do I know it's any good? If we can bring together the relationships that we have on the private credit side as well as our, uh, technology that we know is really good with private credit partners who understand how good we are at underwriting, that's where the magic happens.…

…Similar revolution is taking place in private credit.…

…There's moments where there's great opportunities in liquid markets and there's other, uh, opportunities where private credit is more interesting.…

…I would maybe ask you to paint in broad strokes here, but when you think about private credit being a big new piece of this market versus traditional banks and sort of other flavors in between, I mean, again, sort of painting in broad strokes, where do you see private credit being a good match?…

…And so you've had all this money move into profit private credit, which isn't optimal.…

…We've seen some turbulence in private credit, and there's been a lot of persistent negative headlines.…

…There's this view that private credit just kind of came out of nowhere.…

…And, uh, this one was actually about really bringing into context today how there's this perception that private credit, which is an asset class of its own, but different than private equity credit being, you know, debt financing versus equity being, you know, um, ownership, if you will, rather than lending to the, to the folks listening…

…It includes minority and majority private equity, but also equates to private credit.…

…And what we did was we pivoted into someone who I've trusted for a while, and that was in private credit, but not just any private credit, the most priceless collateral, which is ultra fine art.…

…We get to see the deal flow and the pricing that's happening across private equity, private credit.…

…But again, going back to what Tim said, private credit is set according to this data for significant growth and um, in certain parts of the world, North America and Europe in particular, it's one of the biggest allocation increase areas for our respondents.…

…this is how this, this can be identified differently now amidst, you know, other businesses that have popped up that are almost adjacent to private equity." We've talked about some of that with private credit.…

…We look at the private credit boss.…

…peaker B: Recently the, um, concern has been in the financial committee about something called private credit.…