Matt Levine’s Money Stuff: BlackRock Guards the Gates

People are worried about HPS liquidity

“Private credit” means raising money from long-term locked-up investors and using their money to make loans to companies. The fact that the investors in private credit funds have their money locked up is not incidental; it is the point of private credit. Because the investors’ money is locked up:

1. Private credit funds have a safe funding model. There cannot be a “run on the bank” where all the investors ask for their money back, forcing the funds to sell their loans at fire-sale prices, because the investors can’t ask for their money back. ...