Two analysts debate whether private credit is collapsing or correcting. One points to 2022 when BlackRock halted fund redemptions but the panic passed, and expects more write-downs ahead. Real estate private credit faces different pressures than business-focused deals.
So after everything we've discussed, are we on the verge of a private credit collapse, or is this more of a normal market correction?
I think it's more of a market correction. I think the headlines are overplaying a lot of the concerns here. In reality, we actually saw this happen in 2022 with BlackRock when they shut off, you know, redemptions from their fund, and it was a big hubbub, and then it, you know, kind of fizzled out. I think we're going to see probably more write-downs. We're going to see some more liquidity concerns and constraints. I don't think it's a massive collapse. I think it's going to be a correction. And I do think it really matters where you're in the industry, right? If you're in, you know, real estate, it's very different than in business private credit.
