Private Credit Titans Win the Incentive Fee Lottery

The $1.6 trillion private credit market is enjoying a "golden moment," in the words of one Blackstone Inc. executive, as banks retreat from risky lending and investors flock to funds offering double-digit returns on corporate loans. But those jumping on the bandwagon shouldn't forget private credit are very lucrative too. As this asset class goes mainstream and mints billionaires, investors -- aka limited partners -- should insist on lower costs, and oppose incentives that can reward managers for little effort.