Day One Live from the Milken Institute Global Conference
May 6, 2024
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Purnima Puri, Avi Kalichstein, Marc Lipschultz, Pooja Goyal, Dina DiLorenzo, and Jeff Aronson discuss navigating financial markets, private equity financing, investment strategies, private credit markets, sustainable investments in infrastructure, AI development, fixed income markets, and the evolution of direct lending.
Infrastructure sector shifts focus to hard assets, investing in data centers and power generation to support technology growth.
Deep dives
Private Credit Market Resilience under Economic Downturns
Private credit firms are positioned to withstand a sharp rise in loan defaults, demonstrating resilience even amid potential economic downturns. Despite concerns over untested markets, private credit's long-term commitments and strict underwriting practices contribute to a robust and stable ecosystem.
Private Credit Market Stability and Transparency
Private credit markets offer transparency through business development companies, providing detailed loan data every quarter. This transparency surpasses that of traditional banking systems, enhancing investor confidence. While liquidity and return opportunities vary across asset classes, private credit aims for durable income streams and inflation protection.
Infrastructure Investment amid Energy Transition
The infrastructure sector witnesses a notable shift towards hard assets due to increasing demand under the ongoing energy transition. This transition, highlighted in global economic discussions, drives investments in data centers and power generation to support growing technology sectors. The convergence of capital-intensive infrastructure with high-growth technology demands reflects a dynamic investment landscape.
Private Equity Firm's Approach to Sustainable Energy Transition
A private equity firm discusses the importance of investing in sustainable energy sources as part of the energy transition. They highlight their strategic approach of creating new opportunities when existing ones do not align with their goals. The firm started their own company, Kofia Power, to develop power generation capacity and green data centers, showcasing a forward-thinking mindset in the private markets.
The podcast explores the expansion of private credit solutions to companies beyond those owned by private equity sponsors. Centerbridge Partners, a private equity firm, aims to bring private credit solutions to a larger segment of middle-market companies in the US that are not part of the private equity world. By partnering with Wells Fargo and other banks, they seek to address the financing needs of companies traditionally underserved by banks.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Television and Radio broadcast live from the Milken Institute Global Conference featuring Purnima Puri, Portfolio Manager for Multi-Asset Credit strategies at HPS Investments, Avi Kalichstein, CEO at Hunter Point, Marc Lipschultz, Co-Founder and Co-CEO at Blue Owl, Pooja Goyal, CIO of Infrastructure at the Carlyle Group, Dina DiLorenzo, President at Guggenheim Investments and Jeff Aronson, Managing Principal at Centerbridge. Hosts: Carol Massar and Romaine Bostick. Producer: Paul Brennan.