The Rational Reminder Podcast | Is Private Credit Special? | Rational Reminder 305 @rationalreminder | Uploaded May 2024 | Updated October 2024, 5 hours ago.
Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
Webinar May 22nd: Optimal Compensation Strategies for Business Owners — us06web.zoom.us/webinar/register/3317145039436/WN_GYudVJCYSnyF8HfUx9UbJQ
Private credit is one of the fastest-growing asset classes, and today we take a closer look at
why that is, and if it’s really worth the hype. When you invest in private credit, you are
essentially lending money to borrowers who might have difficulty accessing loans elsewhere.
While these assets may be profitable, they can also incur a lot of risk and typically come with
illiquidity. It is traditionally traded among institutional and accredited investors, rather than retail
investors, namely, non-professional investors. Since private credit has gained so much
popularity in recent years, we use today’s conversation to unpack how private credit works, the
role of private credit funds, the associated performance fees and risks, and what retail investors
should know about this asset class before deciding to invest. Our conversation investigates one
of the top reasons for private credit’s rise in popularity, namely risk-adjusted returns, before
evaluating whether this is a worthwhile reason to invest, depending on who you are. Stay tuned
for our after-show section where we discuss the proposed changes to the capital gains tax, why
the death of value could be exaggerated, and more!
0:00:00 Intro
0:02:49 Main Topic: Private Credit
0:38:29 Main Topic 2: Capital Gains Budget Changes Revisited
0:42:46 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — twitter.com/MarkMcGrathCFP
Money Scope Episode 12 — moneyscope.ca/2024/04/19/episode-12-paying-yourself-as-a-canadian-business-owner
Money Scope Episode 13 — moneyscope.ca/2024/04/26/episode-13-optimal-compensation-from-a-ccpc
David Chilton — thewealthybarber.com
David Chilton on X — twitter.com/wealthy_barber?lang=en
Books From Today’s Episode:
The Wealthy Barber: Everyone's Commonsense Guide to Becoming Financially Independent —
amazon.com/Wealthy-Barber-Updated-3rd-Commonsense/dp/0761513116
Papers From Today’s Episode:
‘Direct Lending Returns’ — rpc.cfainstitute.org/en/research/financial-analysts-journal/2023/direct-lending-returns
‘Risk Adjusting the Returns of Private Debt Funds’ — nber.org/papers/w32278
‘An Inconvenient Fact: Private Equity Returns & The Billionaire Factory’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3623820
‘Reports of Value’s Death May Be Greatly Exaggerated’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3488748
Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
Webinar May 22nd: Optimal Compensation Strategies for Business Owners — us06web.zoom.us/webinar/register/3317145039436/WN_GYudVJCYSnyF8HfUx9UbJQ
Private credit is one of the fastest-growing asset classes, and today we take a closer look at
why that is, and if it’s really worth the hype. When you invest in private credit, you are
essentially lending money to borrowers who might have difficulty accessing loans elsewhere.
While these assets may be profitable, they can also incur a lot of risk and typically come with
illiquidity. It is traditionally traded among institutional and accredited investors, rather than retail
investors, namely, non-professional investors. Since private credit has gained so much
popularity in recent years, we use today’s conversation to unpack how private credit works, the
role of private credit funds, the associated performance fees and risks, and what retail investors
should know about this asset class before deciding to invest. Our conversation investigates one
of the top reasons for private credit’s rise in popularity, namely risk-adjusted returns, before
evaluating whether this is a worthwhile reason to invest, depending on who you are. Stay tuned
for our after-show section where we discuss the proposed changes to the capital gains tax, why
the death of value could be exaggerated, and more!
0:00:00 Intro
0:02:49 Main Topic: Private Credit
0:38:29 Main Topic 2: Capital Gains Budget Changes Revisited
0:42:46 Aftershow
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — twitter.com/RationalRemind
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — twitter.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — twitter.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — twitter.com/MarkMcGrathCFP
Money Scope Episode 12 — moneyscope.ca/2024/04/19/episode-12-paying-yourself-as-a-canadian-business-owner
Money Scope Episode 13 — moneyscope.ca/2024/04/26/episode-13-optimal-compensation-from-a-ccpc
David Chilton — thewealthybarber.com
David Chilton on X — twitter.com/wealthy_barber?lang=en
Books From Today’s Episode:
The Wealthy Barber: Everyone's Commonsense Guide to Becoming Financially Independent —
amazon.com/Wealthy-Barber-Updated-3rd-Commonsense/dp/0761513116
Papers From Today’s Episode:
‘Direct Lending Returns’ — rpc.cfainstitute.org/en/research/financial-analysts-journal/2023/direct-lending-returns
‘Risk Adjusting the Returns of Private Debt Funds’ — nber.org/papers/w32278
‘An Inconvenient Fact: Private Equity Returns & The Billionaire Factory’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3623820
‘Reports of Value’s Death May Be Greatly Exaggerated’ — papers.ssrn.com/sol3/papers.cfm?abstract_id=3488748
