Private Debt Still Offers Investors Value: Carlyle’s Jenkins

The video tutorial discusses the dynamics between liquid and illiquid assets, focusing on direct lending and pension investments in private equity. It highlights the pressure on returns across asset classes due to increased capital inflow and the strategic shift towards illiquid assets for long-term gains. The liquidity premium in private assets is explored, along with the risks of disproportionate losses in private debt markets. The importance of understanding enterprise value and maintaining portfolio diversity is emphasized, especially in the context of late-cycle investments and the loosening of covenants in credit markets.

What trends are observed regarding the migration from liquid to illiquid assets?

How does the liquidity premium affect the returns on private assets compared to public securities?

Discuss the implications of a potential downturn in the private debt markets.