Episode Details

Welcome back to the Alt Goes Mainstream podcast.

We were live from AGM’s RIA Field Trip at Brookfield’s New York office at Brookfield Place with Oaktree Managing Director and Co-Portfolio Manager Danielle Poli to unpack why private credit is at a crossroads and why dispersion is growing. 

Danielle has a unique perch to form a developed view on the current state of private credit. She sits at the intersection of public and private credit, providing her with perspectives on where opportunities and risks lie across the liquidity spectrum. 

Danielle is a founding member of Oaktree’s Global Credit strategy and its Investment Committee, which was established in 2017. She’s been an important contributor to its growth into a scaled multi-asset credit platform. She previously led Oaktree’s product specialist group, which she helped build into a global team supporting credit, private equity, and real estate. She joined Oaktree in 201 and has nearly two decades of experience in private markets. She has been named to Barron’s list of the 100 Most Influential Women in U.S. Finance. 

Danielle and I had a fascinating conversation about the current state of private credit, where cracks might be emerging and where to find pockets of opportunity amid the dislocations. We covered:

• Why is boring beautiful in private credit?
• Where are we in the credit cycle?
• Why it’s important to have a contrarian mindset.
• Where, why, and how dispersion is rising in credit.
• How to underwrite software investments post-AI. 
• Why asset-backed finance can be a diversifier.
• Why now could be the time to prepare for opportunistic and rescue lending opportunities, as maturities are fast approaching.
• How to balance public and private credit investing. 

Thanks, Danielle, for sharing your wisdom, expertise, and passion about private credit. 

Show Notes

00:00 Live Podcast Intro

00:06 Meet Danielle Poli

00:17 Contrarian Mindset 

00:34 Our Sponsor, Ultimus Fund Solutions

01:32 Where Private Credit Stands Today

02:22 Bifurcation and ABF Rise

02:59 Liquid vs Private Convergence

03:36 Danielle’s Career Background

04:13 Why Liquidity Matters

04:39 Dislocation Advantages

05:10 Risk Return Tradeoffs

05:18 Liquidity Premium Compression

05:41 Covenants and Complexity

06:01 Not All Private Credit is Equal

06:34 Corporate vs Asset-Backed

07:05 Why ABF Diversifies

07:30 How Allocators Fund ABF

07:49 Credit Taking Share from Equities

08:49 Tough Direct Lending Vintages

09:22 Rates Shock and Leverage

09:43 AI Disrupts Software Credit

10:41 Oaktree Software Underweight

12:01 Underwriting Software Post AI

12:57 Inside the Investment Committee

13:57 Selling Rallies and Positioning

31:30 Closing Thoughts

A Word from Our Sponsor, Ultimus

This episode of Alt Goes Mainstream is brought to you by Ultimus, the full-service fund administrator and transfer agent powering asset managers in private and public markets. As alts go mainstream, you need real expertise to handle complex fund structures, connect with key distribution partners, and handle sophisticated compliance, reporting, and transparency demands.

That’s Ultimus: high-tech, high-touch solutions for over 450 clients and 2,500 funds with $775B in assets under administration. Backed by an expert team of over 1,200 employees, they place client service at the core of their business, helping you navigate complexity during your fund structuring or launch and then supporting you through every stage of growth