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Animal Spirits Podcast

Talk Your Book: What Is Private Credit?

Dec 18, 2023
Guest Marco Hanig, Managing and Founding Principal of Alternative Fund Advisors and former Principal at AQR, discusses the basics of Private Credit, the shift from banks to private credit platforms, types of lending and interest rates, nature and attractiveness of private credit, and leverage, net current yield, fees, and due diligence in this episode of Talk Your Book.
36:30

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Private credit provides an alternative to publicly traded credit and bank loans, offering direct loans to middle market and smaller companies.
  • Private credit offers higher returns compared to traditional banks and benefits both lenders and borrowers by providing access to credit outside of the traditional banking system.

Deep dives

Private Credit: A New Aspect of Investment

Private credit is a relatively new aspect of investment that offers an alternative to publicly traded credit and bank loans. It involves lending money to middle market or smaller companies through direct loans that are not publicly traded or issued by banks.

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