Private credit sells itself on a simple promise: the underwriting is better. The pitch is that skilled lenders can originate deals banks won’t touch, structure them tightly, monitor them closely, and earn an illiquidity premium in return. But one of the most sobering stories in the market right now is about how that promise can break—quietly, procedurally, and at scale.
According to reporting on the episode, analysts at HPS Investment Partners—the private-lending specialist acquired by BlackR...
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