How Diligence and Discipline Shape Outcomes in Private Credit

Private credit continues to attract attention as investors look for yield in a shifting rate environment. But behind the strong inflows, recent bankruptcies have raised questions about due diligence, loan structures and manager discipline.

In this episode of The Wealth Enterprise Briefing, Managing Partner Michael Zeuner talks with Deputy CIO Matt Farrell about what recent events reveal about the state of private credit and how investors should evaluate managers in an increasingly crowded space.

They discuss: 

• Why recent high-profile bankruptcies point to gaps in collateral verification and underwriting
• How rapid growth in private credit has led to looser lending standards and "covenant-light" structures
• What investors should examine in a manager's due diligence and credit process
• Why speed and deal volume can work against careful underwriting
• The core reasons private credit still holds appeal for investors who can tolerate illiquidity

While headlines may paint a worrying picture, they don't reflect the entire market. For investors who take the time to assess managers carefully and understand the risks, private credit can still serve a meaningful role within a diversified portfolio.

To discuss how recent private credit developments may impact your portfolio, please don't hesitate to contact us.

Important Information:

The Wealth Enterprise Briefing contains our current opinions and commentary, which are subject to change without notice. The Briefing is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information in the Briefing is not a recommendation of any security, and should not be relied upon as investment, legal or tax advice. Please consult with your investment, legal and tax advisors regarding any implications of the information presented in this presentation.