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Steve Klinsky, New Mountain Capital – Private Equity Titan | #489

The Meb Faber Show - Better Investing

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Direct Lending Private Credit vs. Traditional LBOs

It's probably 30 or 40 percent institutions, people who like dividends because it's not meant to be a stock that appreciates. Cash yields have been basically 10 percent cash yields every year and then as interest rates run up, they're closer to 13. There are private versions where you don't have the volatility of stocks trading, you're not as liquid but you market more to just book value every day. So it plays both ways. We first look at it, are we going to buy control? The question is how much does someone want to pay for that? And so it's a little, I use bad analogies like a fishing boat. You go out to catch a Marlin

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