Re-Run: Boaz Weinstein

Private credit and Business Development Companies (BDCs) face a structural liquidity crisis as retail investors increasingly seek exits from funds that overpromised on redemption capabilities. Boaz Weinstein of Saba Capital Management highlights the "reflexivity" inherent in these products, where falling Net Asset Values (NAVs) trigger outflows, forced selling, and further NAV declines. By launching tender offers for private BDCs like Blue Owl at significant discounts, Weinstein provides liquidity while challenging managers who prioritize permanent capital over investor interests. The discussion underscores the disconnect between the perceived stability of private credit—often marked at par—and the reality of public BDCs trading at steep discounts. Managers who refuse to buy back shares at these discounts, despite having the capital to do so, reveal a preference for fee-generating assets over shareholder value, ultimately threatening the long-term credibility of the private credit industry.