“One of the predictions I would make is that the private equity industry is in a tectonic, Darwinian moment itself,” says David Golub, co-CEO of Golub Capital, a direct lending specialist with more than $90 billion in AUM.

Speaking on the latest episode of Credit Exchange with Lisa Lee, Golub also sees a ‘Darwinian moment’ for private credit due to higher-than-usual credit stress and lower-than-expected returns.

“The winners thrive, they adapt, and they grow, and they losers, they don’t,” says Golub.

This will all lead to more consolidation in the industry, and a core group of private equity and private credit firms of size unseen before.

David, who along with his brother Lawrence Golub has been in the private credit space virtually since its inception, also speaks about the history of the industry, the recent bout of negative headlines, and trading the illiquid asset.