Private Credit: Even Apollo's Trapped Investors. Here's Exactly What You Need to Know

Mar 28, 2026

Fabian Chrobog, CIO and co-founder of NorthWall Capital with decades investing through crises. He breaks down private credit structures, why redemptions get gated, and how liquidity mismatches create NAV distortions. Hear why buying into dislocations can pay off, how credit opportunities differ from distressed plays, and oddball loans like financing law firm case portfolios.

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INSIGHT

Retail Liquidity Drove Private Credit Growth

Private credit became widely available to retail via structures like publicly traded BDCs, private BDCs, and interval funds, creating liquidity mismatches.
Managers add leverage and fees; retail investors often expect liquidity they may not actually have, causing panic when headlines spike.

INSIGHT

Structural Differences Explain Redemption Outcomes

Not all semi-liquid vehicles are the same: publicly traded BDCs trade freely, private BDCs can gate redemptions, and interval funds must offer periodic repurchases (typically 5–7%).
That structural difference explains why some funds can 'gate' while others legally must repurchase shares.

INSIGHT

Managers Pick Different Redemption Strategies

Managers' choices during stress vary: some (Blackstone, Oak Tree/Brookfield) used balance-sheet or partner contributions to meet redemptions; others enforced caps.
These responses reflect parent resources, reputational incentives, and perceived arbitrage risks between funds.

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Private credit is all over the headlines — and all over your social media feed. Apollo just gated redemptions, Moody's stripped KKR's credit fund of its investment grade status, and Bill Maher is talking about it on late night TV. But what's actually going on beneath the panic? In this episode, we break down the alphabet soup of fund structures — publicly traded BDCs, private BDCs, interval funds — and explain why the vehicle you're invested in might matter just as much as what's inside it. What happens when you want your money back and the fund says no? And why are some managers bending over backward to meet redemptions while others are slamming the gate shut?

Then we dig into a question most people aren't asking: if stress is building in credit markets, who actually stands to benefit? We sit down with Fabian Chrobog, CIO and co-founder of NorthWall Capital, who has spent over two decades investing through crises from the GFC to European sovereign debt and beyond. He walks us through the difference between distressed investing, special situations, and what he calls "credit opportunities" — and why the rebranding isn't just cosmetic. What does it look like to run toward the fire when everyone else is heading for the exits, and why might the best opportunities take years to show up?

From the surprising world of lending against law firm case portfolios to the real reason "the distressed cycle is coming" has been the most overpromised trade of the last fifteen years, this conversation will change how you think about risk, liquidity, and where the smart money is actually going. Whether you're a retail investor trying to understand what your BDC actually is, or you just want to know why Wall Street keeps reinventing the same product with a new name — this one's for you.

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