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

In episode 6, Julie talks to John Wright about why it’s not enough anymore to just pick the best credits. While clearly counterintuitive statement, John, who is global head of credit and a partner, 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 is sponsored by Bain Capital Credit.