A frequent question from investors and others is, “When is a good time to invest in private credit?” What they mean is, “Is now a good time to invest in private credit?”

Readers of this column know one of our consistent themes is private credit is not a timing thing. On a panel at the US Private Credit conference last week, we were asked a version of that question by the moderator. Shifting into full metaphor mode, we replied “You don’t buy and sell car insurance every time you move your car in and out of your garage.”

The question is by no means simplistic. We watched an interview in which the CEO of a large global asset manager was asked whether he was “still as focused on private credit as you were several years ago.” This particular firm also owns a significant direct lender.

To our surprise, the CEO dodged the question a bit, saying “I don’t want to throw cold water on it, but the world is very excited about private credit.” Implying that perhaps he wasn’t. “In the steady state,” he went on, “you need both the public and private markets functioning.” When pressed on private credit, he said “We’re interested, but it’s ‘What’s the opportunity set?’”