The Credit Clubhouse E54 - A No Good Very Bad Week for Direct Lending
Mar 14, 2026
They unpack a turbulent week for direct lending, including steep market drops and surging redemption requests. The conversation covers investor education gaps, liquidity mismatches, and managers’ redemption-management tactics. They also touch on AI-related sector exposure fears, fraud headlines, retailization trends, and moves toward greater NAV transparency.
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Private Credit Has Become A Catch All
- Private credit now covers diverse strategies beyond corporate direct lending, causing conflation in media and investor understanding.
- Todd Anderson notes many articles still equate private credit with direct lending despite growth in other sub-strategies like ABF and fund finance.
Redemptions Pushed Firms To Cap Liquidity
- Many large listed direct-lending managers have seen 30–40% share price declines YTD and sharp redemption requests have forced caps.
- Anderson highlights caps commonly set between roughly 5% and 8% with outliers near 14–15% of redemptions.
Tell Investors Private Credit Is Not A Stock
- Educate investors and advisors that private credit is not a stock and offers less liquidity in exchange for higher long-term returns.
- Anderson argues RIAs and wealth clients must understand asset-liability mismatch before investing in evergreen private credit funds.