Marc Rowan
👤 SpeakerAppearances Over Time
Podcast Appearances
What do you do with the equity
that is private, safe, but doesn't have a high enough return for alternatives.
It doesn't have a home.
It's not public.
It doesn't go into the public bucket.
It's not an alternative.
It's not high enough rate of return.
But its risk-reward is the best risk-reward.
We call that hybrid.
For us, that's our fastest growing business.
Again, this notion of private investment grade.
Most things that are in institutions' fixed income bucket are public.
Therefore, they're not a source of capital.
We have been able to originate and earn excess return because private but investment grade is not a bucket.
As we get bigger and bigger, we are changing the world.
And we've seen institutions adopt this notion of total portfolio approach.
We've seen family offices.
And we see a general migration.
So in between is almost always the best class because there is poor capital formation.
And there's no one who is assigned every day as their day job for the risk.