And from the financial crisis to, let's say the pandemic, a trillion dollars of extra balance sheet was created in private credit in the US, and maybe about half a trillion in Europe and Asia.

And so today, 43% of the assets in private credit, we think, come from insurance companies, or put the other way, almost two-thirds of all the new money in private credit in the

last three years has come from insurers. By having insurers providing the finance, the private

credit industry has structurally lowered its cost of capital, and therefore it can be competitive

for a fra broader range of loans.

Now, the interesting question then is,

is that going to be in discretionary wealth?

Is it going to be in retirement savings?

Or is it going to be elsewhere?

Well, if you're saving for retirement in 25 years time,

to be stuck in only daily liquidity funds,

almost seems the wrong thing to do. And in fact, our parents all had

access to defined benefit schemes where they could invest 5, 10, 15% in private assets or in gold

or real estate. So in a way, what we're trying to do is almost recreate what our parents had,

but in the current format. Welcome to the Moneybase podcast.

If this is your first time joining, I'm your host, Simon Brewer.

Quick word before we start.

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