Episode 63: Understanding Debt and Credit Funds with Michael Episcope
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Michael Episcope co-founded Origin Investments in 2007. Michael is co-CEO, co-chairs the investment committee and oversees investor relations and capital raising. Prior to Origin, Michael had a prolific trading career and twice was named one of the top 100 traders in the world by Trader Monthly Magazine.
Connect with Michael Episcope
https://origininvestments.com/
In this episode of Tech Equity and Money Talk, Michael Episcope from Origin Investments discusses the rise of credit and debt funds in the private equity market.
He explains that these funds invest in a part of the capital structure that's more protected than equity, aiming to provide stable income through yield.
Listeners are advised to be cautious of inexperienced managers rushing to invest due to the pressure of closed-end funds.
Credit funds provide stable income for investors by investing in a part of the capital structure that is more protected than equity. These funds typically invest in senior debt or leverage senior loans in some way, with the intention of generating stable income through yield rather than appreciation in the asset itself.
This makes credit funds a valuable alternative investment option for investors looking for consistent returns.
Episode Timeline:
[00:02:33] Credit funds in investment portfolios.
[00:04:27] Loan-On-Loan Execution
[00:09:36] Understanding risk in credit funds.
[00:13:35] Understanding cross-collateralization in investments.
[00:16:14] Cross collateralization in investments.
[00:19:38] Reinvesting in Debt Funds
[00:24:31] Balancing portfolio for tax benefits.
[00:26:56] Diversification in real estate investing.
[00:30:16] Debt fund risks in investments.
[00:34:37] Be cautious with new syndication teams.
[00:38:51] Common sense in investing.
[00:40:45] Emotional Decisions in Investing.
[00:43:09] Wealth building through education.
