Understanding Private Credit

What is private credit? Is it a new asset class? Are loans made by direct lenders different from bank loans? And what do potential investors in this asset class need to be aware of?In this episode of the Beyond Markets podcast, Fiona Kenyon, Head of Private Markets Advisors at Julius Baer talks to Craig Packer, Co-President and Head of Credit at Blue Owl Capital, to delve into these questions and many more besides. Private credit and direct lending are undoubtedly better suited to qualified or professional investors than to retail investors. Nevertheless, for those new to the asset class, the conversation here is an interesting introduction into how direct lending might fit into a wealth investor’s portfolio.01:51 Introduction to topic and speakers02:50 What exactly is private credit and is it the same thing as direct lending?04:14 Are companies that borrow from direct lenders typically of poorer quality than those that get bank loans?06:17 What’s the history of direct lending? Is this a new asset class or has it been around for a long time?07:56 Are the characteristics of direct loans very different from bank loans? 10:04 Why has direct lending grown so much in the past few years?14:04 Is this ‘the golden age of credit’? What are some of the risks of direct lending as an asset class? 16:01 Given the complexity, how can direct lending fit into a wealth investor’s overall portfolio?Would you like to support this show? Please leave us a review and star rating on Apple Podcasts, Spotify or wherever you get your podcasts.