'People are under assuming the risk': GQG's Rajiv Jain issues private credit warning
"When you're borrowing at 12% to 13% in a good economy, that cannot be high quality credit", the global equity manager told retail investors.
Listed fund manager GQG Partners’s chair and chief investment officer Rajiv Jain has urged retail investors to avoid private credit, arguing the asset class is too risky at this point in the cycle.
Jain, the founder of the ASX-listed, Florida based fund manager made the comments at the Morningstar Investment Conference on Tuesday.
“When you're borrowing at 12% to 13% in a good economy, that cannot be high quality credit. I think people are under assuming the risk in that these are fairly illiquid,” Jain said.
“[The] large shops did very well in an era when they were very small. So, their historical record doesn't tell you much because what most of these shops were running in 2008 they are now [only] running a fraction. They are the market.
