Worry About Private Credit’s Domino Effect: Aaron Brown

What’s going on in the $3 trillion private credit sector? To understand, let’s start with a sampling of the recent news that’s put investors on edge:

• In February, Blue Owl Capital Inc. gated withdrawals from a retail credit vehicle, meaning investors who wanted their money back were told to wait. Then, it was forced to defend a sale of some loans after Bloomberg News reported that one of the buyers was insurance company Kuvare, whose asset-management arm Blue Owl acquired last year.
• Around the same time, a business development company managed by Apollo Global Management Inc. cut its payout and ...