Short dialogue advocating a 'be the bank' approach in private credit: investors should act like lenders to fill gaps left by banks constrained by post-crisis regulations and limited capital, capturing equity-like returns while assuming bank-like risk. The exchange frames private credit as a timely opportunity for portfolio allocation.
I like to say, be the bank. Like, during this part of the real estate cycle, be the bank. You guys like to say the lender always wins. Be the lender, be the bank. As you do this, the new regulations that have come into play over the last 15 years have restricted what banks can do and the amount that can go in. The market dynamics in general have restricted the amount of capital that banks have coming in. And this presents, as you said, the private credit moment where we as investors can potentially step in and fill that gap and take advantage of this opportunity that's coming through.
Yeah, that's exactly right. But what we like to say is bank like risk, equity like returns. And that really is.
Bank like risk with equity like returns.
I love that. It's exactly what private credit is offering investors right now, which is why so many people are moving, you know, a portion of their portfolio into this. Because, well, of course, like, if I can make equity like returns and take bank like risk, feels like a pretty good trade off.
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