Monetary Matters with Jack Farley The 2026 Private Credit Liquidity Crunch | Leyla Kunimoto on Redemptions in Semi-liquid Vehicles, Private/Public BDCs, and the Future of Alternatives
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Mar 29, 2026 Leyla Kunimoto, founder of Accredited Investor Insights and private-markets researcher, breaks down the surge in semi-liquid evergreen funds and why they sidestep the J-curve. She explains the wave of redemption requests and 5% quarterly caps, unpacks CLO and PIK risks, and why publicly traded BDCs can be more attractive than private ones right now.
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Check Financial Notes For CLO Exposure
- Read fund financial statement notes to see CLO exposure, tranche type, and structural leverage before investing in private credit or BDCs.
- Prioritize funds with more senior secured loans and lower CLO equity to reduce tail risk.
Public BDCs Offer Visible Arbitrage Vs Private Shares
- Public BDCs often hold many of the same borrowers as private/non-traded BDCs, and can trade at discounts to NAV, creating potential arbitrage.
- Public BDCs face market volatility and may be unable to issue equity when shares trade well below NAV.
Less Capital Can Raise Spreads But Starve Originations
- Falling inflows tighten available capital which can widen spreads and create better origination opportunities for lenders, but only if managers have capital to deploy.
- Managers that can't raise equity at distressed prices may be forced to delay originations.