Private Credit Risk Explained: Defaults, Recoveries and Reality

Описание: Is private credit hiding a systemic risk, or is the market simply under stress?

In this clip from the Private Markets Podcast, Fund Shack, Ross Butler challenges the alarmist narrative around private credit. Cyril Demaria-Bengochea, Head of Private Market Strategy at Julius Baer and Associate Professor at EDHEC Business School, breaks the issue down using data rather than headlines.

They discuss default rates versus historical norms, the rise in liability management exercises, and why stress does not automatically imply systemic failure. Cyril explains how governance differs in direct lending, why lenders “eat their own food” by holding loans to maturity, and why recovery capability and experience matter more than sensational claims.

The conversation also explores how higher interest rates and tighter conditions are pressuring borrowers, why underwriting discipline still exists, and how changes in collateral quality could shape future recovery outcomes.

This is a technical, data-led discussion for allocators, advisers, and professionals assessing private credit risk in real portfolios.

Topics covered
🔹Private credit risk and defaults
🔹Direct lending vs leveraged loans
🔹Liability management exercises
🔹Governance and recovery teams
🔹Collateral quality and recovery rates


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💼 Learn more at:
Cyril Demaria-Bengochea
Head of Private Market Strategy at Julius Baer
Associate Professor at EDHEC Business School
Author and advisor to Invest Europe, ILPA, and the European Commission
🌐 https://www.juliusbaer.com/internatio...
🔗 CONNECT on LinkedIn   / cyril-demaria  


Ross Butler
Founder and Host Fund Shack
🌐 www.fund-shack.com
🔗 CONNECT on LinkedIn   / rossbutler1  

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📘 Order Ross Butler’s book
👉 Invest Like a Barbarian: Share in the spoils of the Private Markets revolution
♾️ http://q-r.to/Invest-Like-A-Barbarian
#investlikeabarbarian

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Fund Shack is a podcast exploring private equity, venture capital, private credit, infrastructure and real assets, through in-depth conversations with the investors, founders and thought leaders shaping the future of private markets.

🔗 More episodes: www.fund-shack.com
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#privatecredit #leverage #lending #privateequity #debtfunds #credit #investing


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Chapters
0:00 – Is private credit hiding a bigger problem?
0:29 – What default rates really show
1:00 – Liability management vs actual defaults
1:44 – Why direct lenders behave differently
2:46 – Recovery experience and why it matters
3:23 – Collateral risk and limits of historical data