Private Credit – Brewing Crisis or Tempest in a Teapot?

"Private credit" means raising money from long-term locked-up investors and using their money to make loans to companies. The fact that the investors in private credit funds have their money locked up is not incidental; it is the point of private credit.”

- Matt Levine, Bloomberg Opinion columnist

The Through Line: Private credit has had a rough go of it lately after an extended period of heady growth and robust investor enthusiasm. By definition, the asset class is opaque and investments are locked up for years – a combination that incites heart palpitations and sweaty palms when headlines turn scary. We frame the issues that are making observers most discombobulated, sidestepping fraught emotions to cast a rational light on recent trends.

Click to read: Weekly Strategy Perspectives: Private Credit – Brewing Crisis or Tempest in a Teapot?