Some top financiers who gathered at the Milken Institute conference in Los Angeles are expressing concern about a recent debt binge in private markets. They see similarities to the go-go days of risk-taking before the 2008 financial crisis.
At the conference and in meetings around town last week, Paritosh bansal spoke with over a dozen investors, bankers, and fund managers who are involved in the booming $1.7 trillion private credit market. This market involves investment funds lending money to private equity portfolio businesses and other companies. Many of these financiers are worried about the consequences of debt piling up in this market. They’re particularly concerned because this market operates mostly out of sight of regulators.
