The Credit Clubhouse E55 - Separating Signal from Noise in Direct Lending with David Robbins of StepStone
Mar 21, 2026
David Robbins, Director at StepStone Group with ~20 years in private credit and markets experience. He unpacks recent private credit headlines and why some stories were noise. He explains how private credit grew as banks pulled back and the appeal of semi‑liquid options for retail. He stresses diversification, underwriting strength, and the need for clearer investor education.
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Headlines Overstated Fraud Impact
- Private credit headlines were driven by a few fraud cases like Tricolor and First Brands, not systemic defaults.
- Some portfolios saw less than 1% impact, showing media amplified isolated events beyond their economic significance.
Growth Invited Scrutiny Not Fragility
- Private credit growth attracted scrutiny because the asset class expanded rapidly as banks pulled back from lending.
- Institutional underwriting remained stringent and some lenders effectively removed risky loans from the market at close to par.
Match Lockup To Client Time Horizon
- Match private credit liquidity and lockup to client needs before allocating.
- Robbins cites volatility ~3.5% versus senior loans ~9% and stresses advisors must know clients' withdrawal timing.
