14min chapter

Animal Spirits Podcast cover image

Talk Your Book: A $20 Trillion Dollar Market Opportunity

Animal Spirits Podcast

CHAPTER

Exploring the Growth and Trends of Private Credit with Bob Long from StepStone

The chapter delves into the rise of private credit, particularly direct lending, as an alternative to traditional bank loans for private equity deals, discussing market trends, advantages, and concerns. It explores the shift towards more equity, less debt, and lower leverage in investments, the impact of rising equity valuations due to increased capital, and the benefits of working with lender-principals in private credit markets. The conversation also addresses the substitution of private markets for public markets, the advantages of direct lending over bank loans, the impact of higher debt costs on private equity deals, and the evolving roles of banks and private equity firms in the changing financial landscape.

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