James Elbaor, Founder and Portfolio Manager at Marlton LLC joins OPM to discuss why the private credit boom is officially over. Elbaor explains how artificial intelligence is threatening the SaaS businesses that make up over half a trillion dollars of private credit exposure, while also detailing how liquidity gates are currently trapping investors in massive interval funds like BCRED. The discussion concludes by exploring lucrative upcoming merger opportunities in the public BDC space and analyzing why asset managers utilizing permanent capital vehicles are being rewarded with premium market multiples.
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Timestamps:
00:00 Intro
01:42 Private Credit Redemptions Continue
07:03 IPO Window Shuts & Credit Fund M&A
15:28 AI Threat to SaaS Borrowers
16:51 Sponsor Message Plutus
18:17 Private Credit vs Private Equity
24:25 Systemic Risk and Wrappers
29:15 Public vs Private BDC Gap
34:46 Why Interval Funds List
39:44 Alt Managers Valuation Reset
43:33 Permanent Capital Explained
50:17 Hedge Funds vs Private Equity
54:41 Pershing Square Liquidity
01:04:17 Conclusion
