In this episode sponsored by Obsidian CIO, host Joe Halpern (Managing Partner and CIO of Obsidian CIO) welcomes Rob Grunewald, a veteran private credit investor with more than three decades of experience in middle-market finance, to examine one of the fastest-growing segments of alternative investing.
Together, they unpack how private credit works, why direct lending has expanded beyond traditional banks, and what investors should understand about today’s concerns surrounding defaults, software exposure, covenants, and portfolio construction.
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- Understand the Evolution of Private Credit — Learn how direct lending has shifted from traditional banks to private lenders and why private credit has become a critical financing source for middle-market businesses.
- Explore How Direct Lending Works — Discover how private credit supports acquisitions, business expansion, and private equity transactions while providing investors with floating-rate income opportunities.
- Evaluate Today’s Biggest Risks — Gain insight into current concerns around default rates, software sector exposure, covenant quality, and how changing market conditions affect private credit portfolios.
- Recognize the Importance of Diversification — Learn why diversification across industries, loan vintages, and individual borrowers is essential to managing risk in private credit investing.
- Understand the Role of Covenants — Explore how lender protections work in practice and why strong covenant structures can provide valuable downside protection during periods of economic stress.
- Think Long Term — Discover why private credit is designed as a long-term investment, offering the potential to earn an illiquidity premium while requiring disciplined manager selection and portfolio construction.
Listen to the full Investment Wars podcast on Spotify
IMPORTANT DISCLOSURE: Obsidian CIO LLC sponsors the podcast to further education and critical thinking about the factors that affect markets and investing. The podcast does not provide investment advice. Investment advice is offered only to clients of Obsidian CIO who have entered into an advisory agreement and with whom Obsidian CIO has identified individual objectives, risk tolerance, and other investment needs.
