Unhedged Uncomfortable moments in private credit
98 snips
Mar 12, 2026 
Antoine Gara, FT US private equity and deals reporter, explains private credit basics and its trillion-dollar rise. He discusses liquidity limits, opaque reporting and recent headlines about withdrawal gates. Conversation covers causes like defaults and bank originations, retail distribution risks, managers’ responses, and whether this could become a wider financial problem.
AI Snips
Chapters
Transcript
Episode notes
Private Credit Feeds Buyout Boom
- Private credit primarily funds private equity buyouts rather than regular corporate lending.
- Antoine Gara calls it a trillion-dollar industry grown after 2008 as banks pulled back from mid-market lending.
Liquidity Caps Are Built In To Private Credit
- Private credit funds are semi-illiquid with strict withdrawal limits to reflect hard-to-trade loans.
- Rob Armstrong and Antoine explain typical structures let only about 5% of a fund redeem each quarter, creating pro rata fills when stressed.
Do Not Sell Illiquid Loans As Liquid Products
- Avoid treating semi-liquid private credit funds as liquid retail products.
- Robert Armstrong warns that limited liquidity (eg 5% quarterly) will trigger gating and investor runs when redemptions rise.