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The Problem with Private Markets

Mar 8, 2026

Ben Felix expresses skepticism towards private markets (private equity, credit, real estate), arguing that their perceived lower volatility and higher returns are misleading. He highlights current liquidity issues and gating in private funds, suggesting these problems should not be surprising given the nature of private assets and the incentives for fund managers to push them onto retail investors.

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FS KKR Capital Corporation is mentioned as a publicly listed BDC that experienced a significant price drop due to increased troubled loans and lower investment income.

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