In Private Credit, It’s Peak Popularity — and Peak Worries

“Some of the best opportunities are the result of volatility on the way in and trying to manage assets that are falling in price.”

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In episode 6, Julie talks to John Wright about why it’s not enough anymore to just pick the best credits. While clearly a counter intuitive statement, John, who is global head of credit and a partner at Bain Capital, does go on to explain the alpha-generating techniques that now go into managing private credit portfolios.

In the hyper-competitive world that private credit has become, John says “It’s harder to differentiate solely on the basis of credit selection.”

Julie and John also discuss CLO investors and how their irrational behaviors make these markets inefficient; the long relationship between private credit and regulators; and why he’ll always choose to invest in markets that are complex and illiquid.

John also talks about the top questions he gets from allocators these days, the opportunities for private credit among more mainstream investors, and how he’s always thinking about how to attract a new generation that thinks differently to Bain Credit. Part of that is letting junior people into the rooms where decisions are being made and apprenticeships (hint, these won’t work on Zoom).



This Episode Sponsored by: Bain Capital Credit
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In Conversation with Julie Segal is a dialogue with the people who have shaped and continue to influence the world of institutional investors. The podcast features both familiar names talking about new ideas and upstarts who want to do things differently.

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