The good news for the U.S. economy and American workers is that there’s a massive capital investment boom driving economic growth and technology innovation. We all know about the boom in AI and data centers, but the need is deeper, broader and more consequential. Energy transition and utility expansion, infrastructure, and advanced manufacturing all require significant amounts of capital, and the private credit industry has done its fair shares to finance this next industrial revolution and America’s competitiveness.
The less good news is that this boom is so capital-intensive that we are all collectively realizing that no single market—public equities, public credit, or private credit—can finance it alone.
We believe that the most important financial story of the next decade is not the rise of private credit, but the return of this kind of capital intensity, which we haven’t seen in several decades. Every major era of economic expansion has demanded its own capital architecture, from railroads to fiber optics. The industrial buildout of the 20th century required enormous investment in physical assets, which needed long-duration pools of capital, including insurance balance sheets, designed to finance infrastructure at scale.
