Illiquid assets do not become liquid simply because they are made more accessible. That is the lesson private credit markets are currently teaching a new generation of investors.
Redemption queues and secondary market discounts have unsettled confidence in the asset class, but the picture is more nuanced than it appears.
Founding Partner Patrice Mesnier spoke with Elliot Smither at Professional Wealth Management on why the current pressure reflects a structural mismatch between product design and investor expectation, not a failure of private credit itself.
Read the full article here:
https://www.pwmnet.com/content/cbe8c15c-d5ba-428d-b1cf-04ea7fa41618
Quotes from Oldenburg
“Private credit was built on a clear premise: long-term capital funding illiquid assets. The asset class is not failing. Investors are simply discovering that illiquid assets cannot be transformed into liquid products without friction during periods of stress.”
“The market did not mis-sell private credit inasmuch as it over-simplified it.”
— Patrice Mesnier, Founding Partner