Investing
Fixed Hurdle Fees in Private Credit - Something to be Wary of

Aravind detailed his thoughts about fixed hurdle rates in private credit and why they cause him to raise an eyebrow given the way interest rate environments are variable. A hurdle rate that may have been difficult in 2020 at zero-rate environments may be a walk in the park at today's rates. Put another way - the private credit fund can get paid more for doing the same amount of work/relative performance.
Fixed Hurdle Fees in Private Credit - Something I’m wary of
Please see below for a personal disclaimer on why I choose to write these more technical pieces. Enjoy! While I am generally pessimistic on on many investment fund pitches and “exciting” asset classes - I like to take the time to often think through how they are put together.
Discussion