Ex-Apollo Partner Sees Cracks Emerging in Private-Credit Boom

Sachin Khajuria, who runs family office firm Achilles Management and invests across private assets, said there are cracks forming in the high-flying world of direct lending as money keeps flooding into the industry.

“Small cracks are starting to show,” Khajuria said on Bloomberg Television. “If you look at the default rates on the public side — high yield levered loans — they are likely to be higher on the private side. Remember a lot of companies with risky credit ratings have migrated from the public markets into the private markets.”

Khajuria, who left private credit giant Apollo Global Management ...