Is Private Credit Special? | Rational Reminder 305

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  • เผยแพร่เมื่อ 19 มิ.ย. 2024
  • Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
    Webinar May 22nd: Optimal Compensation Strategies for Business Owners - us06web.zoom.us/webinar/regis...
    Private credit is one of the fastest-growing asset classes, and today we take a closer look at
    why that is, and if it’s really worth the hype. When you invest in private credit, you are
    essentially lending money to borrowers who might have difficulty accessing loans elsewhere.
    While these assets may be profitable, they can also incur a lot of risk and typically come with
    illiquidity. It is traditionally traded among institutional and accredited investors, rather than retail
    investors, namely, non-professional investors. Since private credit has gained so much
    popularity in recent years, we use today’s conversation to unpack how private credit works, the
    role of private credit funds, the associated performance fees and risks, and what retail investors
    should know about this asset class before deciding to invest. Our conversation investigates one
    of the top reasons for private credit’s rise in popularity, namely risk-adjusted returns, before
    evaluating whether this is a worthwhile reason to invest, depending on who you are. Stay tuned
    for our after-show section where we discuss the proposed changes to the capital gains tax, why
    the death of value could be exaggerated, and more!
    0:00:00 Intro
    0:02:49 Main Topic: Private Credit
    0:38:29 Main Topic 2: Capital Gains Budget Changes Revisited
    0:42:46 Aftershow
    Links From Today’s Episode:
    Rational Reminder on iTunes - itunes.apple.com/ca/podcast/t....
    Rational Reminder Website - rationalreminder.ca/
    Rational Reminder on Instagram - / rationalreminder
    Rational Reminder on X - / rationalremind
    Rational Reminder on TH-cam - / channel
    Rational Reminder Email - info@rationalreminder.ca
    Benjamin Felix - www.pwlcapital.com/author/ben...
    Benjamin on X - / benjaminwfelix
    Benjamin on LinkedIn - / benjaminwfelix
    Cameron Passmore - www.pwlcapital.com/profile/ca...
    Cameron on X - / cameronpassmore
    Cameron on LinkedIn - / cameronpassmore
    Mark McGrath on LinkedIn - / markmcgrathcfp
    Mark McGrath on X - / markmcgrathcfp
    Money Scope Episode 12 - moneyscope.ca/2024/04/19/epis...
    Money Scope Episode 13 - moneyscope.ca/2024/04/26/epis...
    David Chilton - thewealthybarber.com/
    David Chilton on X - wealthy_barber?la...
    Books From Today’s Episode:
    The Wealthy Barber: Everyone's Commonsense Guide to Becoming Financially Independent -
    www.amazon.com/Wealthy-Barber...
    Papers From Today’s Episode:
    ‘Direct Lending Returns’ - rpc.cfainstitute.org/en/resea...
    ‘Risk Adjusting the Returns of Private Debt Funds’ - www.nber.org/papers/w32278
    ‘An Inconvenient Fact: Private Equity Returns & The Billionaire Factory’ - papers.ssrn.com/sol3/papers.c...
    ‘Reports of Value’s Death May Be Greatly Exaggerated’ - papers.ssrn.com/sol3/papers.c...
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ความคิดเห็น • 16

  • @victormanuelmendezfonseca6033
    @victormanuelmendezfonseca6033 หลายเดือนก่อน +8

    It would be great to have a slide or a tldr with the conclusions of the episodes

  • @piranhaa2
    @piranhaa2 หลายเดือนก่อน +1

    Great content, as always guys! It's always refreshing to hear about less common, illiquid, asset classes that are pitched with more upside than there may be.
    And it's nice to see some SCV premiums! I lucked out and started investing with the RR 5 factor portfolio in 2021, which I probably never would have without your guys' content. Huge thank you for all the work you've been doing to educate individuals about investing.

  • @dumpsterdiver6415
    @dumpsterdiver6415 หลายเดือนก่อน +11

    What´s that background noise? :(

  • @thomas6502
    @thomas6502 หลายเดือนก่อน

    Great listen as always. Keep up the great work, and... er, grate yards. ;-)

  • @zackjensen4484
    @zackjensen4484 หลายเดือนก่อน +3

    private credit investor here. If you do private credit against real estate assets at low LTVs (70% or lower), it is my view you are generating alpha. Prove me wrong please!

  • @lipsontajgordongrunk4328
    @lipsontajgordongrunk4328 25 วันที่ผ่านมา

    Is that rational reminder zipper sweater for sale?

  • @AForEh
    @AForEh หลายเดือนก่อน

    In their pitches, they talk about how it’s uncorrelated to public markets…well yeah if you don’t allow your clients to sell, of course it’s going to look uncorrelated.

  • @cyclingphilosopher8798
    @cyclingphilosopher8798 หลายเดือนก่อน

    Content is great, but the relaxed tone somehow reminds me of SNL's Delicious Dish.

  • @slyanover
    @slyanover หลายเดือนก่อน +3

    Use infinite banking to invest in private credit.

  • @mordet2
    @mordet2 หลายเดือนก่อน

    Has there been a way to invest in global small cap value?

    • @rimservices
      @rimservices หลายเดือนก่อน +1

      ISVL, for example

    • @wandaespana2577
      @wandaespana2577 หลายเดือนก่อน +8

      AVDV and AVES

  • @AForEh
    @AForEh หลายเดือนก่อน

    Howard Marks got paid handsomely by Brookfield

  • @pavlosaikevych
    @pavlosaikevych หลายเดือนก่อน

    We demand the picture of kids yard of Ben property

  • @stevekehoe875
    @stevekehoe875 29 วันที่ผ่านมา

    Private credit funds with the lowest cost of capital do produce alpha. Certainly, on average, TANSTAFL.