The distinction between GP risk and LP risk is the part that tends to get lost in these conversations. When a bank blows up, depositors and the system are on the hook. When a private credit fund hits trouble, it's the institutional LPs who signed up for it. Not the same thing, but the headlines don't always make that clear. Helpful breakdown.
The distinction between GP risk and LP risk is the part that tends to get lost in these conversations. When a bank blows up, depositors and the system are on the hook. When a private credit fund hits trouble, it's the institutional LPs who signed up for it. Not the same thing, but the headlines don't always make that clear. Helpful breakdown.
Thanks David, media headlines are frustratingly click-baity on the topic.