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.