In this quarterly macro-commentary from the BC Partners’ Credit team, Ted Goldthorpe and Mike Terwilliger discuss the decidedly mixed macro backdrop—with clear challenges and equally unambiguous economic positives.
The authors revisit their concerns about an AI bubble with a comparison to the dot-com era. Could AI be overdone and if so, create a correction in the S&P 500?
They also explore a key driver behind the growth of private markets—passive investing, which has muted fundamental investing and lead to capital distortions. Private credit remains among the last vestiges of active management and provides an attractive counterbalance for allocators.
The team highlights a recent transaction signaling the “top of the market” and note that PE’s obstacles have translated into new lending opportunities.
Read more here.
