Making Markets Phil Huber: The Case for Private Credit - [Making Markets, REPLAY]
Feb 28, 2025
Phil Huber, Head of Portfolio Solutions at Cliffwater, brings his expertise in private credit and alternative investments to the conversation. He discusses the explosive growth of the private credit market, now at $1.2 trillion, and addresses common concerns about potential market bubbles and volatility. Huber emphasizes the importance of due diligence and manager selection while navigating this complex asset class. He also shares insights on the evolving role of alternative investments in wealth management and the strategic approaches to mitigate risks.
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Phil Huber's Career Journey
- Phil Huber spent almost his entire career within RIAs, starting in his family firm before moving into asset management at Cliffwater.
- His unique path involved deep experience in alternatives, leveraging this at Cliffwater to serve wealth managers.
Evolution of Alternatives in Wealth Management
- Alternatives in wealth management evolved from liquid alts disappointment to embracing evergreen semi-liquid structures.
- These new structures unlock private market exposure with manageable liquidity and tax benefits for RIAs.
Drivers of Private Credit Growth
- Private credit demand grew due to banks retreating post-Dodd-Frank and private equity's appetite.
- Even with rising rates, private credit growth continues due to private markets expanding and fewer public stocks.