Traci Alloway

But you'll find somebody like an oak tree who typically does this at points of stress or distress.

They'll go to their LPs and say, hey, we have a great opportunity.

We want to raise $10 billion.

And because over the years they've been really, really savvy about that, they're able to raise that money.

So they'll create a special opportunities fund to go out and buy these particular private credit loans that are stressed or distressed.

You need the expertise to go in and work out those loans and potentially either

take and run the company from an equity standpoint or kick the can down the road and hopefully restructure and revise those loans.

So I think that's where it really starts to get thorny.

If we get into a protracted redemption cycle, the financing runs out and they have to start selling things.

It starts to really cut into the bone.

We do have a precedent for how the gates of interval funds have behaved over time.

So if you go back to the

commercial real estate market.

After Silicon Valley Bank and First Republic Bank, everyone was trying to pull their money out of large real estate interval funds.

There's one famously that hit the gates and prevented redemptions.

That fund now has kind of gotten to the other side.

It actually had a better return than its credit fund last year.

And people tend not to panic for longer than three, six months, right?

Human nature, crisis is a day, a week, a month.

But if it just stays there long enough, people tend to get cooler heads and it works itself out.