Money Maze Podcast 182: Private Credit: Hype, Hazard, or the Next Big Thing in Long-Term Growth? With Huw Van Steenis, Vice Chair of Oliver Wyman.
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Aug 28, 2025 
Huw Van Steenis, Vice Chair of Oliver Wyman and a banking expert, shares insights on the rapidly growing private credit market. He discusses its impact on wealth portfolios and the potential risks associated with the shift from traditional banking to unregulated private markets. The conversation dives into the role of insurance companies, the allure of evergreen funds, and the complexities of securing loans with hard assets. Huw emphasizes the necessity for careful risk evaluation amidst evolving investment strategies and the changing economic landscape.
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Regulation Opened Private Credit's Door
- Post-2008 bank re-regulation created space for private credit to expand into riskier and mid-market loans.
- That shift added roughly $1tn in US private credit balance sheet before the pandemic.
Insurers Are Reshaping Private Credit
- Insurance companies now provide a large and growing share of private credit funding and seek higher-quality, longer-dated loans.
- This pivot lets private credit originate asset-backed, investment-grade loans like data centers and infrastructure.
Private Credit Is Not One Thing
- Private credit spans mid-market loans, leveraged loans, and asset-backed lending, creating a heterogeneous market.
- That range means risk profiles vary from higher-risk non-investment grade to firm investment-grade secured loans.