Is Private Credit Still Safe? Ron Biscardi's View of the Risks

The short answer: Ron Biscardi thinks so. The iConnections CEO told The Pomp Podcast the private credit scare was "totally overblown," because private credit funds use far less leverage than the banks that failed in 2008 and institutions are still committing to the asset class. Independent research supports the point that fund-level leverage is low, but regulators also warn about hidden layers of leverage, limited liquidity and rising defaults at weaker funds. Low leverage reduces the risk of a system-wide crisis; it does not mean individual funds or investors cannot lose money.

Drawing on The Pomp Podcast, hosted by Anthony Pompliano (anthonypompliano.com), with guest Ron Biscardi, co-founder and CEO of iConnections (episode released November 6, 2026).

His main argument is leverage. "There's not a tremendous amount of leverage in the private credit funds," he said, estimating "two or three to one." By contrast, he said, systemic blowups happen when an asset class levers 30, 40 or 50 to one, as some banks did before the 2008 financial crisis. He also said private credit funds lend to operating businesses in the middle market that banks do not serve well, and those loan payments flow back to investors as cash.

At the fund level, generally yes. An NBER study found equity typically makes up 65% to 80% of private credit funds' financing, compared with about 10% for U.S. commercial banks. But averages hide differences. The IMF put debt-to-equity at roughly 0.8 to 1.2 times for business development companies (BDCs) and estimated about 6 to 1 for middle-market CLOs, and warned that leverage also sits with borrowers and investors, where it is harder to see. The Federal Reserve noted that public BDC leverage has been rising. So Ron's comparison holds for typical funds, but it is not the whole risk picture.

Ron referred to the Blue Owl situation that played out in the first quarter. In February 2026, Blue Owl said three of its BDCs would sell $1.4 billion of loans to institutional investors at 99.7% of par. Reuters reported that the firm also permanently halted redemptions at one fund, Blue Owl Capital Corp II, and replaced them with capital distributions, which sent alternative asset manager stocks lower. The episode showed a liquidity risk: investors in some private credit vehicles cannot always get their money out when they want.

Ron said that, from what he has heard, some funds that lent too aggressively were "able to sell their portfolios ranging from 60 cents on the dollar to 90 cents on the dollar," which he did not see as a major crash. Those figures are his secondhand account and we could not verify them. They are not the Blue Owl sale, which was at 99.7% of par. A sale at 60 cents would still mean a large loss for investors in that fund.

According to Ron, yes. "My institutional investors are still completely focused on the asset class," he said. At his late-February event in Miami, he said, private credit funds had about 3,000 meetings out of roughly 20,000, putting it in the top three asset classes. Those are Ron's figures for his own event; iConnections' event recap reports more than 21,000 meetings overall. He said private credit grew because bonds could not deliver the returns investors needed in the zero-rate era, and he acknowledged the market got a little overheated with many new funds.

iConnections CEO Ron Biscardi says the private credit scare was overblown because funds use little leverage. That limits system-wide risk, but individual funds still carry liquidity and default risk.

An NBER study found equity typically finances 65% to 80% of private credit fund assets, versus about 10% for U.S. banks. BDCs run roughly 0.8 to 1.2 times debt to equity, per the IMF.

In February 2026, Blue Owl sold $1.4 billion of loans at 99.7% of par and permanently halted redemptions at Blue Owl Capital Corp II, replacing them with capital distributions.

Not always. Many private credit vehicles limit redemptions, and some have halted them, so investors may not be able to exit when they want.

Ron Biscardi says yes. He said private credit funds had about 3,000 meetings at his February 2026 Miami event, one of the top three asset classes there.

Last updated: November 7, 2026

The Pomp Podcast is hosted by Anthony Pompliano and covers the future of business, finance and technology. The show features Pomp's conversations with founders, investors and economists about bitcoin, markets, AI and the economy. Follow The Pomp Podcast on X.

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This article reflects the opinions of the guests and host as shared on The Pomp Podcast. It is guest opinion, not investment advice. Do your own research before making any investment decision.