Business Breakdowns
Episode 163 A Primer on Private Credit
Business Breakdowns

Episode 163: A Primer on Private Credit

Business Breakdowns

Episode 163

A Primer on Private Credit

Armen Panossian is the co-CEO of Oaktree. We cover the historic mismatch between supply and demand in private credit, the importance of strong relationships for ensuring deal flow, and where growth is coming from in the space right now.

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(00:00:00) Welcome to Business Breakdowns

(00:00:52) Deep Dive into Private Credit: A Growing Market

(00:03:17) Exploring the Dynamics of Supply and Demand in Private Credit

(00:06:08) The Evolution of Private Credit Since the Global Financial Crisis

(00:10:28) The Role of Private Equity and Banks in Private Credit

(00:14:03) Building a Sustainable Advantage in Private Credit Strategies

(00:18:32) Innovative Financing: The Case of Life Sciences Lending

(00:22:23) Identifying New Opportunities: Infrastructure Lending and Rescue Financing

(00:25:10) The Importance of Fund Size in Private Credit Strategies

(00:28:32) Oaktree's Approach to Private Credit Products

(00:31:25) Investment Strategy and Allocation Across Funds

(00:34:12) Risk Management and Restructuring Expertise in Private Credit

(00:36:39) Navigating the Secondary Market for Private Loans

(00:38:36) Evolving Landscape of the Distressed Debt Market

(00:42:13) Impact of COVID on Private Credit Valuations

(00:46:16) Oaktree and Brookfield: A Strategic Partnership

(00:48:03) Future Considerations: Rates, Elections, and Economic Implications

 

A Primer on Private Credit

Introduction

Matt
Welcome back to Business Breakdowns. Matt Reustle here with a special two-part episode today on private credit. In 2023, the global private credit market topped $2.1 trillion in assets and committed capital. And for a market that really emerged in the '90s, that growth is enough to warrant the attention that private credit receives.

But rather than having the blanket statements like private credit is an emerging bubble, we wanted to explore the various segments of private credit. Ask simple questions like, where is this growth coming from? Take a closer look at the supply and demand, and capture some of the nuance that is so important to any of these conversations and these looks at these emerging markets.

To start, we use the lens of a successful fund manager in the space. Our first guest, Armen Panossian, is Co-CEO of Oaktree. And beyond Howard Marks' famous memos, Oaktree is a $192 billion asset manager known for its long history and credit. Armen leads the firm's performing credit business that spans liquid and private markets, which we will be focusing on today.

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