The Julia La Roche Show · Saturday, August 15, 2026
Chris Whalen discusses the bankruptcy of 777 Partners, a fund involved in insurance, reinsurance, sports teams, and financing an airline, as a preview of private credit's downfall. He notes that the fund's collapse, possibly due to fraud, highlights the risks in the largely undefined private credit sector, which he believes will take years to unwind.
“Well, 777 was a, uh, a fund that got involved in all kinds of things. Insurance, reinsurance, sports teams. They own a bunch of soccer clubs. Uh, they were financing a Canadian airline. You know, there was no limit to what these guys get involved in. And that typifies private credit. You almost can't define it. It defies expectations, right?”
“And what I would tell people is this is what the demise of private credit is going to look like. It's going to be a big mess and it's going to take years to unwind. Uh, there's probably fraud involved in many of these aspects.”
“And if there are any consumers out there who have annuities written by these companies, they could lose some or all of their money. And that's why this is important.”