Excess Returns · Friday, August 28, 2026
Despite the significant criticism private credit is receiving, Dan Rasmussen believes it may perform better than private equity over the next five years. He points out that private credit is at least receiving cash flow back at high interest rates, making it difficult for the equity in those capital structures to survive and grow.
“And so I think what's going to happen and more and more cases is that the private credit, you know, someone someone's looking at private credit, you know, it's getting so much, uh, uh, uh, uh, uh, criticism and deservedly so. Um, but if I had to bet, which is going to do better over the next five years, private credit or private equity, I'd be putting my money in private credit.”
“Because at least they're getting cash flow back. Um, uh, and at those rates, um, it's really hard to see how the equity, um, uh, survives and grows.”
“And again, my money is that the, the, the, the, uh, debt side has the leverage right now.”