Pimco CEO warns: Private markets have not been tested by recession, need to be vigilant about risks

Jin10 reported on August 11 that Roman, the CEO of Pacific Investment Management Company, which manages $2.1 trillion in assets, warned that the private market has not yet undergone the test of a severe economic recession, and therefore must "constantly think about potential issues." As asset management firms and private capital companies are expanding channels for retail investors to enter the private market, concerns are growing about whether such illiquid assets are suitable for retail investors. As of March 31, approximately $200 billion of the assets managed by Pimco were allocated to alternative assets, making it a significant player in the private capital space. Last week, foreign media reported that Meta has chosen Pimco to lead a $26 billion debt financing for its data center expansion plan. Roman pointed out that there is "immense" demand in the UK and the US for "infrastructure, energy transmission, and data centers." He added, "Our strategy has not actually changed. We have been working hard to find areas where we believe there are opportunities and excess returns. And I think the way we approach it ensures that when a recession arrives, we can manage risks appropriately."