E289: The Evolution of Private Credit and What Comes Next

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Jan 23, 2026

Rakesh Jain, Global Head of Private Credit at Pantheon and builder of a large credit secondaries platform. He explains why credit secondaries emerged, how seasoned portfolios differ from primary origination, and the mechanics of liquidity in private markets. Short takes cover diversification across thousands of loans, LP versus GP-led trades, adverse selection, and where credit secondaries may head next.

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INSIGHT

Multiple Value Drivers In Credit Secondaries

Value in credit secondaries comes from discounts, pull-to-par, call protection, and equity upside.
Pricing cushions expected losses while cash flows and structure drive realized returns.

ADVICE

Diversify Deeply Across Loan Exposures

Diversify across thousands of loans, geographies, vintages, sectors, and credit qualities.
Limit look-through exposure to single companies and blend durations and sub-strategies for resilience.

ADVICE

Use Secondaries To Complement Primary Credit

Use credit secondaries as a complement, not always a replacement, to primary private credit.
Seek fully funded portfolios for shorter duration, attractive pricing, and potentially better credit quality.

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Why did private credit secondaries emerge, and what problem do they solve for investors? David Weisburd speaks with Rakesh Jain about building one of the world’s largest private credit secondary platforms at Pantheon, the mechanics of liquidity in private markets, and how seasoned portfolios differ from primary credit origination. Rick explains how diversification, underwriting discipline, and alignment shape risk-adjusted outcomes across cycles.

Disclaimer: This episode was recorded in 2025. Market conditions, data, and opinions discussed reflect that time period.

Highlights:

How Pantheon identified the need for credit secondaries
Defining the investor value proposition in a nascent market
Key differences between credit and private equity secondaries
Sources of value in seasoned credit portfolios
Managing diversification across thousands of underlying loans
LP versus GP-led secondary transactions and trade-offs
Mitigating adverse selection through sourcing and diligence
Misunderstood risks and correlations in private credit
The role of credit secondaries in institutional and wealth portfolios

Guest Bio:

Rakesh Jain is Global Head of Private Credit at Pantheon, where he oversees one of the largest private credit secondary platforms globally. He has extensive experience across credit investing, portfolio construction, and platform building, and has played a central role in developing Pantheon’s approach to liquidity solutions, diversification, and risk management in private credit markets. Earlier in his career, he held senior roles at Morgan Stanley, Goldman Sachs, and Citigroup.

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Introduction (1:19) Developing investment process and scaling at Pantheon (3:16) Evolution of the private credit market (5:37) Diversification strategies in private credit (9:00) Credit secondaries: use cases and investor benefits (10:56) Strategies in LP and GP-led investing (14:01) Addressing adverse selection in credit secondaries (18:29) Building a $12 billion private credit franchise (21:13) Enhancing GP relationships as a secondary investor (22:27) Risks and misconceptions in the private credit market (26:16) Innovations and institutional products in private wealth (28:17) Tax efficiency and capital appreciation strategies (31:30) The future of private credit at Pantheon (33:03) Career advice for finance professionals (35:37) Incorporating private credit secondaries in portfolios (37:57) Utilizing evergreen funds for investment (39:17) Closing remarks