Joe Weisenthal

Yeah.

It's expanded beyond that.

But it's basically all sort of versions, you know, various flavors of a kind of financing that is quite old and non-exotic at all.

That was very interesting, the difference between fund structure of a private equity fund versus a private credit fund, which I had never really thought of, right?

So VC and PE, you're like hunting around for deals and so forth.

They're like, all right, we got a deal.

Then you call up all the LPs who give you commitments and say, wire us that cash that you promised to.

Now, whereas in the financing realm, you just always have the cash on hand.

It's always coming in and out.

And the coming in and out part also clarifies something for me, which is that unlike with, say, a VC investment or a PE investment where you put the money in and it's sort of indeterminate when you get the money back, right?

You don't know when the company is going to die.

IPO, you don't know how it's going to sell, et cetera.

With lending, you do have that schedule from day one of when the money is supposed to come back in.

And therefore, the idea of gates and redemption schedules in the first place makes more sense because when you have this sort of pre-understood timing of when the money comes back in, you can understand why you have a mechanism in place to schedule and regulate when the money is allowed to go back out to the LPs.

Yeah, totally.

Well, and this gets to a thing I've wondered about, which is like, well, okay, as part of the issue here with some of the more retail-oriented private credit, which is

education or lack of sophistication where you have entities putting money into private credit that hadn't really appreciated that this is an element of it, which maybe.

But on the other hand- But the gating itself.

Yeah, the gating itself.

But on the other hand, the industry wouldn't be as big as it is today were you not going out to these less sophisticated investors.