The Private Credit Boom is Over: Redemption Requests Exceed Liquidity | James Elbaor | Marlton LLC

James Elbaor, Founder and Portfolio Manager at Marlton LLC joins OPM to discuss why the private credit boom is officially over. Elbaor explains how artificial intelligence is threatening the SaaS businesses that make up over half a trillion dollars of private credit exposure, while also detailing how liquidity gates are currently trapping investors in massive interval funds like BCRED. The discussion concludes by exploring lucrative upcoming merger opportunities in the public BDC space and analyzing why asset managers utilizing permanent capital vehicles are being rewarded with premium market multiples.

Try model portfolios available on Plutus and get a 45-day fee waiver when you signup with code OPM45: runplutus.com/mm-opm/login

Follow James on X: x.com/jameselbaor

Follow Max on X: x.com/maxwiethe

Follow Other People’s Money on:

Apple Podcast bit.ly/4e7QJ1M

Spotify bit.ly/3Yhaazi

YouTube bit.ly/3C63VXR

X x.com/opmpod

JFMW Partners LLC (“Promoter”) is providing this endorsement of, and information related to, the advisory services offered by Namsoft Advisors LLC ("Namsoft"). Promoter is not a current client or investor in any Namsoft advisory account or private fund. Promoter receives cash compensation from Namsoft in the form of a flat referral fee of $750 for each client that engages Namsoft as a result of Promoter's promotional activities. Because Promoter is compensated for this endorsement, a material conflict of interest exists, as Promoter has a financial incentive to promote Namsoft's services to you. This endorsement is delivered as part of a podcast or other audio program produced by Promoter and does not constitute investment advice or a recommendation that any particular advisory arrangement is suitable for you.

Timestamps:

00:00 Intro

01:42 Private Credit Redemptions Continue

07:03 IPO Window Shuts & Credit Fund M&A

15:28 AI Threat to SaaS Borrowers

16:51 Sponsor Message Plutus

18:17 Private Credit vs Private Equity

24:25 Systemic Risk and Wrappers

29:15 Public vs Private BDC Gap

34:46 Why Interval Funds List

39:44 Alt Managers Valuation Reset

43:33 Permanent Capital Explained

50:17 Hedge Funds vs Private Equity

54:41 Pershing Square Liquidity

01:04:17 Conclusion