{"id":46890,"date":"2026-03-05T11:22:05","date_gmt":"2026-03-05T11:22:05","guid":{"rendered":"https:\/\/agooka.com\/news\/usa\/everything-you-want-to-know-about-the-drama-in-private-credit-but-were-too-afraid-to-ask\/"},"modified":"2026-03-05T11:22:05","modified_gmt":"2026-03-05T11:22:05","slug":"everything-you-want-to-know-about-the-drama-in-private-credit-but-were-too-afraid-to-ask","status":"publish","type":"post","link":"https:\/\/agooka.com\/news\/usa\/everything-you-want-to-know-about-the-drama-in-private-credit-but-were-too-afraid-to-ask\/","title":{"rendered":"Everything you want to know about the drama in private credit but were too afraid to ask"},"content":{"rendered":"<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/6720cafb9b3250dbbceaaff1?format=jpeg\" alt=\"Blackstone CEO Steve Schwarzman speaks and holds out his hand in a gesture during the Business Roundtable CEO Innovation Summit in Washington, DC on December 6, 2018.\"\/><figcaption>Blackstone CEO Steve Schwarzman<\/p>\n<p>Jim Watson\/AFP\/Getty Images<\/p>\n<\/figcaption><\/figure>\n<ul>\n<li><em>This post originally appeared in the Business Insider Today newsletter.<\/em><\/li>\n<li><em>You can sign up for <\/em><a href=\"https:\/\/www.businessinsider.com\/subscription\/newsletter\/insider-today\" rel=\"noreferrer\" target=\"_blank\"><em>Business Insider&#039;s daily newsletter here<\/em><\/a><em>.<\/em><\/li>\n<\/ul>\n<p><strong>The credit might be private, but the problems are becoming pretty public.<\/strong><\/p>\n<p>A once-wonky corner of Wall Street that&#039;s exploded in recent years is facing increased scrutiny.<\/p>\n<p>But what even is private credit? Why are people nervous? And, most importantly, why should you care?<\/p>\n<p>Let&#039;s break it down:<\/p>\n<p><strong>People are freaking out about private credit. What gives? <\/strong>PE giant Blackstone saw a bunch of withdrawals from its main private-credit fund for retail investors. The redemptions (7.9% of shares, totalling $1.7 billion) actually exceeded the fund&#039;s quarterly limit of 5%. Blackstone still honored it, but not before asking its executives to kick in some of their own money to help the fund.<\/p>\n<p><strong>Ok, but what <em>is<\/em> private credit? (I totally know, but I&#039;m asking for a friend.) <\/strong>It&#039;s when investors loan money directly to businesses without involving traditional lenders. While it has existed for decades, private credit&#039;s breakthrough came after banks had to pull back on lending following the financial crisis.<\/p>\n<p>If that description is too simple, check out Apollo&#039;s 125-page slide deck about private credit that was published just in time for Christmas. (Personally, I&#039;d just take coal.)<\/p>\n<p><strong>So, Blackstone had a bad quarter in private credit. Now everyone&#039;s nervous.<\/strong> It&#039;s not <em>just <\/em>Blackstone. Blue Owl, another major player, also recently froze withdrawals from a private-credit fund. Now its stock is down more than 32% this year, and people are reportedly shorting the stock like crazy.<\/p>\n<p>For critics, it&#039;s confirmation of what they&#039;ve been warning about: private credit is a bubble waiting to pop.<\/p>\n<p><strong>Private credit is bad and dangerous. Got it. <\/strong>Whoa, let&#039;s not throw the baby out with the bathwater. Private credit still plays an important role. It&#039;s an alternative for businesses that might need money fast or on more flexible terms than banks can offer.<\/p>\n<p>But when a space quickly explodes \u2014 private credit&#039;s grown to roughly $3 trillion \u2014 there are bound to be people who get in over their heads. Even Apollo&#039;s Marc Rowan, a private credit evangelist, acknowledged that a &quot;shakeout&quot; is coming.<\/p>\n<p><strong>This all sounds like Wall Street mumbo jumbo. Why should I even care? <\/strong>Because Wall Street wants you to invest in these types of assets. In search of new capital, firms have launched private-credit funds for a broader audience.<\/p>\n<p>It&#039;s part of a bigger trend of giving everyday investors access to private markets previously reserved for institutional investors and the ultrawealthy.<\/p>\n<p><strong>Bottom line: Is private credit bad or good? <\/strong>It&#039;s not as simple as that. The lack of transparency around private credit is both a feature and a bug. It offers borrowers confidentiality while also raising concerns about unseen risks.<\/p>\n<p>Add in the fact that less-sophisticated investors are being pitched such a complex product, and panic can quickly snowball.<\/p>\n<p><strong>Honestly, I&#039;m just happy to be talking about a market risk that doesn&#039;t involve AI. <\/strong>Well \u2026 about that.<\/p>\n<p><strong>Dude. <\/strong>I know.<\/p>\n<p>Read the original article on Business Insider<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Blackstone CEO Steve Schwarzman Jim Watson\/AFP\/Getty Images This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider&#039;s daily newsletter here. The credit might be private, but the problems are becoming pretty public. A once-wonky corner of Wall Street that&#039;s exploded in recent years is facing increased scrutiny. But [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":46891,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":{"0":"post-46890","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-usa"},"_links":{"self":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/46890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/comments?post=46890"}],"version-history":[{"count":0,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/46890\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/media\/46891"}],"wp:attachment":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/media?parent=46890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/categories?post=46890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/tags?post=46890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}