It’s Only a Bubble If You Panic

In this episode of The Compound and Friends, Josh Brown, Michael Batnick, and Ben Carlson host Sonali Basak, Chief Investment Strategist for iCapital, to discuss the intricacies of private equity and private credit. The conversation explores the misconceptions surrounding private credit, the importance of due diligence when picking fund managers, and the role of private credit in the American economy. They analyze the exposure of Business Development Companies (BDCs) to recent bankruptcies, the transparency (or lack thereof) in private credit, and the potential risks and rewards for investors. The group also touches on the increasing accessibility of alternative investments for individual investors, the impact of potential economic downturns, and the importance of scale for fund managers.