Lending Where the Banks Won’t Go: What’s Fueling Europe’s Growing Real Estate Private Credit Market?
Other People's Money with Max WietheShow Notes
Learn more about the Fundrise Income Fund here: https://fundrise.com/mm
In this episode of Other People's Money, Thomas Lloyd-Jones, Co-founder and CIO of Zenzic Capital, joins the show to unpack the nuances of the real estate private credit market. He explains how the media often conflates direct lending with the broader asset class, overlooking real estate and asset-backed lending. Lloyd-Jones details how increasing banking regulations are forcing traditional lenders to retreat, creating a widening gap for opportunistic credit funds to step in.
This podcast is for informational purposes only and not an inducement to invest with Zenzic Capital. Zenzic Capital’s investment products are limited to professional clients only. The information within this podcast should not be relied upon as tax, legal or investment advice.
Learn more about Zenzic Capital: https://zenziccapital.com/
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Timestamps:
00:00 Intro
01:52 Private Credit Breakdown
03:32 BDCs And Redemptions
06:35 Allocation Failure Debate
08:47 Regulation and Fragmentation
12:07 Basel III Shift
14:10 Fundrise Income Fund
15:10 Systemic Risk and Leverage
17:36 Banks’ Retreat is Opportunity
20:56 Good vs. Bad Risk Premia
24:39 Senior Finance
28:44 Downside Protection and Spotting Bad Deals
37:48 Macro Matters for Exits
40:13 Finding Fixable Distress
43:22 Geopolitics and Rate Shock
47:01 Preferred Equity Playbook
51:49 When Development Risk Pays
54:52 Student Housing Reality Check
59:40 Macro Allocation Framework
01:01:59 Conclusion
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This episode is brought to you by Sarmaya Partners. Learn more about Sarmaya’s LENS ETF, their full data and comparison, including performance here: https://sarmayaetf.com/
This episode is brought to you by Sarmaya Partners. Learn more about Sarmaya’s LENS ETF, their full data and comparison, including performance here: https://sarmayaetf.com/
James Elbaor, Founder and Portfolio Manager at Marlton LLC joins OPM to discuss why the private credit boom is officially over. Elbaor explains how artificial intelligence is threatening the SaaS businesses that make up over half a trillion dollars of private credit exposure, while also detailing how liquidity gates are currently trapping investors in massive interval funds like BCRED. The discussion concludes by exploring lucrative upcoming merger opportunities in the public BDC space and analyzing why asset managers utilizing permanent capital vehicles are being rewarded with premium market multiples.
Eric Wallerstein, Chief Macro Strategist at Clocktower Group, joins OPM to discuss why he sees substantial risk that the Fed is making a policy mistake by hiking into a supply shock that could cause a 2022 style bear market. He also explores the global coordination of rate hikes and why he believes the participation of lower growth economies like Canada indicate that this is a reaction to higher energy prices and not a substantially higher global neutral rate.
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