Private Debt: Past, Present & Future
Streaming Income - A Podcast from Barings
How to Diversify in the Asset Class?
I think it's a good segue then to my next question, which is how you diversify in the asset class. You can do that by selecting different managers within the same asset class. So how do you think people should think about that and the best way to sort of manage some of those correlation risks? Yeah. I think our preference is more horizontal than vertical at this point.
In the first episode of our new Investing Together series, Mercer's Global Head of Private Debt, David Scopelliti joins Barings' David Mihalick to discuss the evolution of private credit, including how this market developed, what conditions are like today, and where we go next.
Episode Segments:
(02:00) – David’s career path and role at Mercer
(05:23) – How private debt markets have evolved over 30+ years
(07:59) – The “five P’s” of manager selection
(10:23) – Achieving diversification in private credit
(12:15) – The art and science of valuations in private markets
(16:54) – How to think about liquidity and fund structure
(19:31) – How much private credit can grow from here
(22:13) – Private credit in North America, Europe, and Asia-Pacific
(27:39) – The interplay between private debt managers and banks
(31:18) – The outlook for private debt markets
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