Why Private Credit Investors Can't Always Cash Out

ABOUT THE EPISODE Private credit has attracted billions from investors looking for higher returns. But what happens when they all want their money back?

Itay Goldstein, Wharton Professor of Finance, explains the liquidity risk inside semi-liquid private credit funds. He examines why funds holding illiquid loans can struggle to meet redemption demands, how AI-driven concerns over software borrowers intensified recent pressure, and why new investment flows can dry up at the exact moment investors seek to exit.

The conversation also considers what liquidity really means for private credit investors, the risks of expanding these products to retail investors, and how funds can better prepare for periods of financial stress.

ABOUT THE PODCAST Every day, business scholars answer pressing questions in their research - but what do their insights mean for you? In this podcast, Wharton faculty dive into what inspired their studies and how their findings resonate with the world today. Learn how research insights translate into knowledge you can use, with host Dan Loney.

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