The two hottest investment sectors right now are private credit and infrastructure. Of the two, I’d place my money on infrastructure to be the winner when it comes to delivering the long-term performance investors in these two hot sectors are seeking. For private credit to deliver the high returns it has been promising, private credit investment managers have to employ ample amounts of leverage. Leverage, as we all know, tends to amplify not only returns, but also losses when underlying fundamentals don’t deliver what investors expect.

Should we head into a recession (as many fear we may) the ability of many borrowers to repay these highly leveraged loans may be severely impaired. On the other hand, although demand for the services infrastructure delivers — energy, water, transportation and the like — al