Verdad analysts warn private equity investors face greater struggles than private credit investors
Updated
Updated · MarketWatch · Apr 28
Verdad analysts warn private equity investors face greater struggles than private credit investors
5 articles · Updated · MarketWatch · Apr 28
Blue Owl Capital shares have fallen 40% and Ares Management 30% in 2026, while the S&P private-equity index is down 11%.
Verdad’s Greg Obershain and Daniel Rasmussen cite two decades of public market data showing equity returns consistently underperform debt returns after credit downgrades.
They note private equity’s risk is offset only if a few big winners compensate for heavy losses, unlike private credit, where gains are limited to yield and losses directly reduce returns.
Did the 'private is better' mantra just mask extreme risks now being exposed by the 2026 market downturn?
Could asset-backed finance be the overlooked safe harbor in the current private credit storm?
Is private equity a ticking time bomb as AI decimates the value of its underlying software companies?
What red flags signal your private credit fund is about to freeze investor withdrawals?
With 401(k)s now holding private credit, are retirement savers walking into a hidden liquidity trap?
How can investors tell if a fund manager is hiding losses using 'amend-and-pretend' accounting tricks?