Yahoo Finance Private Credit Is Resilient Despite Trouble, Blue Owl Co-CEO Says
(Bloomberg) -- Blue Owl Capital Inc.’s Marc Lipschultz said private credit is still a good place to invest, even as some in the industry warn of weakness and more trouble ahead.
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The co-founder and co-chief executive officer of the New York-based asset management firm said he hasn’t seen an up-tick in defaults or companies having performance troubles yet, but acknowledged that the current market has developed some uncertainties.
Such uncertainty in the $1.7 trillion private credit market was exposed recently when Vista Equity Partners-backed Pluralsight Inc. shifted assets away from its direct lenders, spurring worry that the incident wasn’t just a one-off. Direct lenders have also pitched deals in recent weeks with structures that act as a workaround to bank lending constraints.
Lipschultz said Tuesday in a Bloomberg Television interview that investors need to “pick their manager wisely, understand their strategy.” And if an investor wants their capital back they should, “pay attention to the manager, pay attention to the structure.”
Investors in Canadian investment manager Ninepoint Partners LP recently struggled to get their cash back when the firm temporarily suspended cash distributions in three of its private credit funds to preserve cash.
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