Bloomberg Talks Bain’s Steve Pagliuca Talks Private Credit
8 snips
Oct 17, 2025 Steve Pagliuca, a senior advisor at Bain Capital Private Equity and expert in leveraged buyouts, chats with Bloomberg’s Jonathan Ferro and Annmarie Hordern. Pagliuca discusses his confidence in private credit despite concerns over the U.S. national debt and its refinancing risks. He contrasts the Electronic Arts buyout with HCA and examines how market changes have affected deal structures. With insights into sports valuations and the growth of women’s sports, Pagliuca also reflects on his family's immigrant story and the alignment of personal and professional values.
AI Snips
Chapters
Transcript
Episode notes
HCA Deal Versus Today's Bigger Equity Deals
- Pagliuca compares HCA's 2006 buyout ($5bn equity, $27bn debt) with today's EA deal that uses much more equity.
- He emphasizes markets now require lower leverage and higher equity cushions in buyouts.
Private Credit Is Less Systemic
- Private credit is less systemic than bank credit because losses generally wipe out equity rather than creating a multiplier effect.
- Steve Pagliuca says this structure makes him less concerned about private credit compared with broader bank or systemic risks.
National Debt Poses Bigger Macro Risk
- Pagliuca highlights the national debt and rising interest costs as a larger macro risk than private credit markets.
- He warns that interest payments are now among the government's biggest expenditures and threaten the dollar and budget flexibility.