Sep 21, 2026 · 50 min
Private credit’s growth puts underwriting discipline to the test
E432: $24 Billion Investor on Private Credit, the Psychology of Winning & Fear of Failure
Ted Koenig connects private credit’s rise to the incentives, operating choices, and personal sacrifices behind building a large investment firm.
- 1Private credit grew into a roughly $2 trillion market as banks ceded lending share after the financial crisis.
- 2Managers create alpha by earning superior returns or avoiding losses, with stable outcomes central to institutional investors.
- 3Monroe’s organic growth and retail expansion reflect a strategy built around alignment, delegation, and long-term investor results.
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Koenig reflects on regretting how much he worked while raising his children and considers whether that cost was an unavoidable trade-off.
The brief
Ted Koenig traces his path from law, accounting, and finance to founding Monroe, motivated by the flexibility and entrepreneurial opportunity he saw in private credit.
Private credit became a roughly $2 trillion asset class after banks pulled back from lending, leaving managers to compete through specialization, experience, and disciplined underwriting.
Koenig’s central investment argument is that alpha comes from earning more than competitors or losing less—an especially important distinction for institutions needing stable liquidity.
Monroe has compounded at roughly 25% annually for 15 years through organic growth, while expanding toward high-net-worth investors and registered investment advisers.
The conversation’s sharpest personal turn comes when Koenig acknowledges working too hard while raising four children, framing ambition as a trade-off rather than a simple virtue.
Featuring
GE Capital
Michael JordanListen to the full episode and explore every guest, topic, and moment on PodLume.